In a development that should cheer numerous Indian SMEs, India and Bangladesh have agreed to enhance bilateral trade by establishing border haats along the Meghalaya-Bangladesh border. Moreover, opening up of Chittagong and Mongla ports in Bangladesh to facilitate trade movement has also been approved by the two countries. Access to the two Bangladeshi ports is likely to reduce time and logistics expenses for North East (NE)-based SMEs, which are required to travel to the Kolkata port to export their goods.

On the other hand, Indian rice and wheat export-based SMEs can now heave a sigh of relief because India has eased the export ban on both the commodities slightly by agreeing to export 3 lakh tonnes (lt) of par-boiled rice and 2 lt of wheat to Bangladesh.

Earlier in August this year, the India-Bangladesh Chamber of Commerce and Industry and the Confederation of Indian Industry had concluded a deal to promote Indian SME investments in Bangladesh to enhance bilateral trade between the two countries. Significantly, Union Commerce and Industry minister Anand Sharma has forecasted that bilateral trade between India and Bangladesh could reach USD 5 billion from the present USD 3 billion in the next 2 years.

Sharma stressed on the need for increasing investments and joint ventures between Bangladesh and the NE, and added that infrastructure, pharma and capacity building sectors are some of the key areas that could enhance the partnership. SMEs in these sectors could seek to capitalise on the investment-friendly business environment between the two countries at the moment to expand their businesses.

Notably, Indian SMEs endeavouring to expand to the neighbouring country can also seek to avail the benefits of Bangladesh government’s SME Department, which seeks to provide financial assistance to small units.

On the other hand, Bangladesh Foreign minister Dipu Moni is scheduled to be in Tripura next month on a 2-day visit to boost cross-border trade with the NE states, which augurs well for NE-based SMEs.