India and Bangladesh held their first joint working group meeting on trade after a prolonged gap, with both sides flagging key barriers during discussions in New Delhi on October 8-9.
The talks took place as the two countries work to normalise bilateral relations, which had faced difficulties under Bangladesh’s interim administration. Officials described the discussions as positive and said they would help prepare for a planned meeting of the commerce secretaries.
India raised concerns over high import duties imposed by Bangladesh on commodities such as fruits, rice, iron and steel, restrictions on Indian cotton exports, and the use of positive lists for trade through land border posts in the northeastern states. While trade with states like West Bengal operates on a negative list, trade with the Northeast is restricted to a limited list of permitted items. India has long sought a negative list approach for the northeastern states to create a level playing field. The Indian side also called for the revival of border markets (hats) and integrated check posts that had been shut during the interim government’s tenure.
Bangladesh sought the removal of restrictions on its exports through Indian land ports, withdrawal of anti-dumping duties on jute products and PET film, harmonisation of product standards, and simplification of certification procedures under the Bureau of Indian Standards. It also requested retention of existing tariff preferences following its graduation from least developed country status.
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Discussions covered regional freight movement, with Bangladesh seeking greater access for its trucks to Nepal and Bhutan via Indian territory, improved infrastructure at Indian land customs posts (including access roads, warehouses and quarantine facilities), increased land port capacity, and faster cargo clearance to reduce delays and transport costs.
Two-way trade stood at $12.36 billion in FY26, with India’s exports accounting for $10.58 billion. Officials noted that Bangladesh is unlikely to ease restrictions on Indian exports given the current trade deficit. The two sides are also working to arrange meetings of other working groups on issues such as consular matters.