India, US Firms Propose Bangladesh Port Upgrades & Investment
By Business Desk
Indian and US companies express strong interest in Bangladesh investment, proposing key land port enhancements and digital infrastructure development to boost bilateral trade.
Businesses from India and the United States have signaled strong interest in investing in Bangladesh, alongside proposing significant enhancements to the country’s investment climate. This development was announced by Commerce Minister Khandakar Abdul Muktadir following a recent meeting in Sylhet.
Indian business representatives, some of whom have already committed investments, are particularly focused on optimizing the operational efficiency of land ports connecting Bangladesh and India. They highlight that current limited operations escalate raw material costs for Indian enterprises.
- Ensuring the full operation of land ports between Bangladesh and India.
- Establishing a task force with Bangladeshi businesses for infrastructure investment.
- Creating a trust specifically for developing digital infrastructure.
The Bangladeshi government has expressed a welcoming stance towards these specific Indian proposals.
Separately, a trade delegation from the United States has also conveyed its interest in investing within Bangladesh. This delegation has offered a series of suggestions aimed at fostering a more favorable investment climate, which the Bangladeshi government is currently evaluating.
India holds the position as Bangladesh’s second-largest trading partner in Asia, with China being the largest. This significant economic relationship operates under the South Asian Free Trade Area (SAFTA), where India extends duty-free and quota-free market access to nearly all products originating from Bangladesh.
Key bilateral trade figures for the 2025-26 fiscal year (until February) show:
- Indian exports to Bangladesh: USD 9.73 billion.
- Indian imports from Bangladesh: USD 1.62 billion.
- Total bilateral trade: USD 11.35 billion.
Despite these strong ties, Bangladesh faces a substantial trade deficit, presently exceeding USD 27 billion. Commerce Minister Muktadir underscored the critical need to significantly expand the overall volume of both exports and imports to better align with Bangladesh’s current economic scale.