Special Correspondent, Dhaka:
A high-level Indian business delegation’s visit to Dhaka is highlighting an important reality in Bangladesh-India relations: despite diplomatic strains, economic ties remain too significant for either side to ignore.
A 14-member delegation from the Confederation of Indian Industry (CII), led by Director General Chandrajit Banerjee, arrived in Dhaka to explore opportunities in trade, investment, and industrial cooperation. The delegation, which will stay until Wednesday, includes senior executives from major Indian companies covering pharmaceuticals, healthcare, engineering, automobiles, manufacturing, and energy.
The visit comes at a time when political relations between Dhaka and New Delhi remain complicated. Yet the presence of such a broad business delegation suggests that commercial interests are creating space for engagement even when diplomatic ties face challenges.
The delegation is scheduled to meet senior government officials, including Commerce Minister Khandaker Abdul Muktadir, Finance and Planning Minister Amir Khosru Mahmud Chowdhury, and State Minister for Foreign Affairs Shama Obaed Islam. It will also meet Bangladeshi business leaders, with the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) hosting a luncheon.
For Indian companies, Bangladesh offers several potential advantages, including a large consumer market, competitive manufacturing capacity, and access to regional and international markets. Investment in Bangladesh could allow Indian firms to serve the local market while also using the country as a production base for exports.
However, the economic relationship has a structural weakness: the large trade imbalance. Bilateral trade reached around $12.36 billion in fiscal 2025-26, with Indian exports to Bangladesh at $10.56 billion against Bangladesh’s exports of only $1.78 billion.
This imbalance is likely to remain a key concern for Dhaka. Bangladesh needs greater market access in India, particularly through the removal of tariff and non-tariff barriers. Without stronger export opportunities, increased Indian investment alone may not substantially improve the balance of economic relations.
The immediate challenge, therefore, is to separate business from political disagreements. Continued trade, investment, and industrial cooperation could provide a practical channel for maintaining bilateral engagement.
For Bangladesh, the priority should be clear: attract productive Indian investment while securing better access to the Indian market. For India, deeper investment in Bangladesh could strengthen supply chains and expand access to a neighboring market.
The CII delegation’s visit may therefore be more than a routine business mission. It could test whether economic pragmatism can help stabilize a relationship facing diplomatic uncertainty.
