Major deal on cards to boost Dhaka-Delhi trade

[Wergeland]

I don’t understand your reasoning.

If BD buys more from India - it would be for three reasons:

1. It can afford to buy more due to rising prosperity.

2. It is buying less from others.

3. It is buying at the expense of home grown industry. This is unlikely because India already enjoys unfettered access. And BD industry does not enjoy massive subsidies like Indian industry.

Of course the purchase power must be there to begin with.

For Bangladesh to buy more from India, it dosent have to buy less from others per se. Bangladesh could simply have more earnings from export and trade surplus with third countries. Then using that hard earned currency to buy more Indian products.
This is exactly what i believe India is hoping to achieve.

 

[BananaRepublicUK]

Of course the purchase power must be there to begin with.

For Bangladesh to buy more from India, it dosent have to buy less from others per se. Bangladesh could simply have more earnings from export and trade surplus with third countries. Then using that hard earned currency to buy more Indian products.

Yep!

To think otherwise shows a lack of understanding of basic economics and appreciation of Bangladesh’s competitiveness in the sectors it specialises in.

 

[UKBengali]

What they say has a lot of impact on what Hasina can do.

Every time their Hinduvta leaders spew venom - it restricts what Hasina can do.

You are not going to purchase strategic assets from a country calling you termites, are you?

BD is not going to buy any strategic assets from India and so that is not an issue to start off with.

The main areas of trade are in energy, food, raw materials and low to medium level manufactured goods. Stuff like nuclear technology is out of bounds as India does not have the tech and also cannot be allowed such power over strategic assets.

Hasina is cool with a few low-lives in India spewing venom against BD as she knows it is just for domestic consumption and they will start looking silly anyway as BD GDP per nominal builds up more of a lead over India as time passes - expect Indian per capita growth to be 1-2% a year less than BD over the next 10-15 years.