In a bid to boost economic ties between India and Bangladesh, the two countries are likely to ink agreements which would facilitate the setting up of makeshift bazaars or haats at common border points. This development is likely to cheer numerous Indian SMEs which export to Bangladesh or plan to enter the neighbouring country for business purposes.

Significantly, Bangladeshi Commerce minister Faruque Khan will be coming to India on October 20, 2010 for a three-day business tour and the proposed agreements are likely to be signed during his trip.

The proposed trade agreements are expected to benefit Indian SMEs in sectors such as handicrafts, horticulture, fresh and dry fish, wooden and cane furniture, utensils, farming tools and home-made clothing, among others. Besides benefiting from reduced transportation costs as a result of the physical proximity between the two regions, Indian SMEs are likely to gain from easier trade movement.

North-East (NE) based SMEs are likely to benefit the most if the proposed haats are constituted. Earlier in January 2010, Bangladesh Prime Minister Sheikh Hasina had expressed a keen interest in increasing trade activities between Bangladesh and NE states, especially Assam, Tripura and Meghalaya.