Trade gap with India reaches $5.47 billion

[idune]

Trade gap with India reaches $5.47 billion
FE Online Report | Published: January 17, 2018 11:59:06 | Updated: January 17, 2018 22:28:42


The country’s trade deficit with India stood at $5.47 billion in the past fiscal year (FY17) mainly due to a surge in imports from the next door neighbour.

Merchandise import from India jumped by around 13 per cent in FY17 and reached $6.14 billion (or $6146.2 million), which was $5.45 billion (or $5450.7 million) in FY16, according to the statistics released by the central bank recently.

On the other hand, exports to India dropped marginally in FY17 to $672.4 million from $689.62 million in FY16.

India is the second largest import source of Bangladesh. It is also the third largest trading partner of the country after China and the United States.

India-Bangladesh merchandise trade stood at $6.81 billion in the past fiscal year, which was $6.14 billion in FY16.

India has been providing tariff-free access to all Bangladeshi products (except 25 restrictive items) since 2011.

https://thefinancialexpress.com.bd/economy/trade-gap-with-india-reaches-547-billion-1516168746

 

[FuturePAF]

Based on these numbers, Bangladesh is exporting $300-400 million to India and importing $5.8 Billion from India. Seems like a raw deal. What are the major items Bangladesh imports from India, which it can not produce economically itself. If Capital and machinery investment is needed to help local producers, reforms in laws need to be done to increase FDI and decrease reliance on imports, while giving jobs to local people, an increasing money circulating within Bangladesh, thereby increasing the economy.

 

[idune]

Based on these numbers, Bangladesh is exporting $300-400 million to India and importing $5.8 Billion from India. Seems like a raw deal. What are the major items Bangladesh imports from India, which it can not produce economically itself. If Capital and machinery investment is needed to help local producers, reforms in laws need to be done to increase FDI and decrease reliance on imports, while giving jobs to local people, an increasing money circulating within Bangladesh, thereby increasing the economy.

Bangladesh mostly import food items , raw materials, transport vehicles etc. Despite Bangladesh haveing capability to export many products like garments, construction materials, battery and others, india put barriers to block Bangladeshi export. Situation got acute since indian stooge awami regime took the power with indian interference and money.

 

[FuturePAF]

Bangladesh mostly import food items , raw materials, transport vehicles etc. Despite Bangladesh haveing capability to export many products like garments, construction materials, battery and others, india put barriers to block Bangladeshi export. Situation got acute since indian stooge awami regime took the power with indian interference and money.

A party should run against the awami party on this issue as a platform. Fair Trade.

 

[idune]

A party should run against the awami party on this issue as a platform. Fair Trade.

In "Bangladesh", it is worse than dictatorship, there is no possibility of free election.

 

[captainvancouver]

I would image a big part of the deficit is raw material used by Banagleshdi manufacturers who in turn off set the Indian deficit with a US/Europe surplus.

 

[idune]

I would image a big part of the deficit is raw material used by Banagleshdi manufacturers who in turn off set the Indian deficit with a US/Europe surplus.

Indians asking US and EU subsidize fall out for indian trade barriers. This is just epic. indian education system gone fully in al cowda path.

 

[FuturePAF]

I would image a big part of the deficit is raw material used by Banagleshdi manufacturers who in turn off set the Indian deficit with a US/Europe surplus.

That very well maybe true, but are their restrictions on Bangladeshi Exports to India? If there is free trade one way but not the other, that's not very fair. Also with much of a trade imbalance, especially in food production, and importation of raw materials, wouldn't Bangladesh be better served by producing such products internally, and employing its own people and counting that as offsetting the increased cost due to production at home. China has done this and has focused on employing its people, rather than the cheapest cost possible. Nearly $6 billion per annum is a lot to have leave your country.

 

[captainvancouver]

Depends

That very well maybe true, but are their restrictions on Bangladeshi Exports to India? If there is free trade one way but not the other, that's not very fair. Also with much of a trade imbalance, especially in food production, and importation of raw materials, wouldn't Bangladesh be better served by producing such products internally, and employing its own people and counting that as offsetting the increased cost due to production at home. China has done this and has focused on employing its people, rather than the cheapest cost possible. Nearly $6 billion per annum is a lot to have leave your country.

Depends on many factors. Will relying on domestic raw material make exports cost prohibitively high? Will slapping tarifs cause food price inflation as farmers move from food to cotton? Will the majority benefit or loose?

Indians asking US and EU subsidize fall out for indian trade barriers. This is just epic. indian education system gone fully in al cowda path.

???? Are you a madrasa student or just a fifth generation first cousin union offspring? Or maybe both.

 

[cloud4000]

Based on these numbers, Bangladesh is exporting $300-400 million to India and importing $5.8 Billion from India. Seems like a raw deal. What are the major items Bangladesh imports from India, which it can not produce economically itself. If Capital and machinery investment is needed to help local producers, reforms in laws need to be done to increase FDI and decrease reliance on imports, while giving jobs to local people, an increasing money circulating within Bangladesh, thereby increasing the economy.

Is India "cheating" Bangladesh like China is "cheating" Pakistan?

 

[idune]

Is India "cheating" Bangladesh like China is "cheating" Pakistan?

Stick to the topic, nothing to do with Pakistan, China or any third country.

???? Are you a madrasa student or just a fifth generation first cousin union offspring? Or maybe both.

indian (you) asking US and EU subsidize fall out for indian trade barriers, shows al cowda education quality in india. Nothing to do with me or my education. indian sharp tongue does not work here.

 

[FuturePAF]

Is India "cheating" Bangladesh like China is "cheating" Pakistan?

China is using Pakistan to earn on loans it is making and employing labor in Pakistan on billion dollar projects, no doubt, but considering our scummy political system where not much FDI gets attracted, we are at least getting hard infrastructure (Remember the story about $200 billion in Swiss bank accounts). it would have taken 20 years to get what 2-3 years of CPEC. So its either the Chinese or our own politicians. Its about who get less of a cut over the long term. Raw Pakistan cotton can now be more efficient turned into apparel, with cheaper and more reliable electricity. more gems can be extracted and exported if the gem exporters get their equipment. Roads and rails to speed up exports, similar to the Indian-Japanese Delhi-Mumbai corridor being built. If Pakistan can jump start its economy and get exports to western countries then the loans and infrastructure investment will be worth it. if not then its a heavy debt Pakistan will be saddled with. Bangladesh is importing some of the raw materials it could make itself, and for being open it is not getting an export market in India. (I know you will say, Pakistan needs to also convince China to allow Pakistan exports to China, such as food stuffs and other products to keep the trade imbalance manageable if Pakistan's economy is to grow. This is a point I have stressed as well)

Is India willing to invest tens of Billions into Bangladeshi Infrastructure. If So, then it would be similar to how CPEC is helping Pakistan. If not, then its a raw deal for Bangladesh, enforced by its allies in the Awami Party.

 

[captainvancouver]

China is using Pakistan to earn on loans it is making and employing labor in Pakistan on billion dollar projects, no doubt, but considering our scummy political system where not much FDI gets attracted, we are at least getting hard infrastructure (Remember the story about $200 billion in Swiss bank accounts). it would have taken 20 years to get what 2-3 years of CPEC. So its either the Chinese or our own politicians. Its about who get less of a cut over the long term. Raw Pakistan cotton can now be more efficient turned into apparel, with cheaper and more reliable electricity. more gems can be extracted and exported if the gem exporters get their equipment. Roads and rails to speed up exports, similar to the Indian-Japanese Delhi-Mumbai corridor being built. If Pakistan can jump start its economy and get exports to western countries then the loans and infrastructure investment will be worth it. if not then its a heavy debt Pakistan will be saddled with. Bangladesh is importing some of the raw materials it could make itself, and for being open it is not getting an export market in India. (I know you will say, Pakistan needs to also convince China to allow Pakistan exports to China, such as food stuffs and other products to keep the trade imbalance manageable if Pakistan's economy is to grow. This is a point I have stressed as well)

Is India willing to invest tens of Billions into Bangladeshi Infrastructure. If So, then it would be similar to how CPEC is helping Pakistan. If not, then its a raw deal for Bangladesh, enforced by its allies in the Awami Party.

Problem with your statement is that this is business not charity. In business you need leverage. Leverage comes from choices. If you have no choice then no leverage.

 

[FuturePAF]

Problem with your statement is that this is business not charity. In business you need leverage. Leverage comes from choices. If you have no choice then no leverage.

That is true, Pakistan doesn't have much choice, at least not at the amount being invested. Although why would China want to give Pakistan such a large loan. Is it merely to get steaady interest payments. If Pakistan were unable to pay, it would sour relations between the two countries, so China is calculating Pakistan would be able to pay over the long term. This is similar to how America Loaned Britain a sizable amount after WWII. This loan was paid off slowly, and the money at that critical time helped jump start the British economy.

China is building up an ally, and it is an application of soft power writ large. It signals to other nations that partnering with china and getting on board the OBOR (One Belt One Road) intitive can benefit them s well.

For China; Pakistan will become a nation on its border that can facilitate development of its western regions.

 

[Adonis]

That is true, Pakistan doesn't have much choice, at least not at the amount being invested. Although why would China want to give Pakistan such a large loan. Is it merely to get steaady interest payments. If Pakistan were unable to pay, it would sour relations between the two countries, so China is calculating Pakistan would be able to pay over the long term. This is similar to how America Loaned Britain a sizable amount after WWII. This loan was paid off slowly, and the money at that critical time helped jump start the British economy.

China is building up an ally, and it is an application of soft power writ large. It signals to other nations that partnering with china and getting on board the OBOR (One Belt One Road) intitive can benefit them s well.

For China; Pakistan will become a nation on its border that can facilitate development of its western regions.

Do you have any example so far of a country whose economy has been boosted by Chinese so called Development HELP. I have examples like Sri Lanka, Cambodia and African nations as examples to my argument. Besides read this

https://www.khaleejtimes.com/editorials-columns/are-more-nations-falling-into-chinas-debt-trap

Chinese model as understood by me is I will build a house for you in your land--> With my own Material---> and manpower--> when it's buld you have to pay back the cost of building it with interest (high) and if you couldn't---> it will keep house and give you some rent (that too decided by me)