TBT DESK: Faster movement of goods across the border and greater investment in infrastructure have emerged as key priorities for Bangladesh and India as business leaders from the two countries seek to deepen trade and investment ties.

The Confederation of Indian Industry (CII) has proposed forming two joint business-to-business task forces to strengthen cooperation, with one focusing on digital transformation and the other on infrastructure investment and financing in Bangladesh.

The proposals were made at a meeting between a CII delegation and Commerce Minister Khandakar Abdul Muktadir at the Ministry of Commerce on Tuesday. Representatives of several leading Indian companies, including firms already investing in Bangladesh, attended the meeting.

Indian businesses raised concerns over difficulties in transporting raw materials and goods through Bangladesh’s land ports, particularly Benapole, where delays and inefficient cargo handling add to business costs.

“More efficient cargo handling at Benapole and smoother movement of goods across the border will reduce transportation and raw material costs for businesses. This will ultimately help increase bilateral trade,” Muktadir told reporters after the meeting.

The proposed task forces would bring businesses from both countries together to work on practical areas of cooperation. One would focus on sharing India’s experience and expertise in digital transformation, while the other would explore ways to increase Indian investment and financing in Bangladesh’s infrastructure sector.

Welcoming the initiative, Muktadir said Bangladesh would require substantial investment in railways, highways, ports, LNG infrastructure and other sectors to achieve its ambition of becoming a trillion-dollar economy.

“Bangladesh needs huge investment in new railways, highways, ports, LNG infrastructure and other sectors. If Indian investors are interested in these areas and such investment is beneficial for Bangladesh, we will view the cooperation positively,” he said.

The discussion also highlighted how Bangladesh’s infrastructure and logistics bottlenecks are affecting the wider economy and keeping pressure on consumer prices.

Muktadir said logistics costs in Bangladesh were around 16 per cent of GDP, compared with a global average of about 10 per cent. The higher costs raise expenses as goods move from production centres to retail markets, eventually placing additional pressure on consumers.

He said reducing prices was not simply a matter of monitoring markets, as the cost of energy and electricity, interest rates on loans, productivity, transportation and infrastructure all influence the final price of goods.

Better connectivity, uninterrupted and affordable energy supplies and a more efficient supply chain could create scope for lower prices, he said, while cautioning that consumers should not expect immediate results.

Developing the infrastructure and energy capacity needed to reduce costs would take time, Muktadir said. The government is working to develop new LNG infrastructure, improve gas supplies and ensure the uninterrupted operation of power plants.

The minister also pointed to seasonal shortages behind periodic increases in the prices of green chillies, onions and vegetables. Although domestic production has increased, supply gaps can still emerge at certain times of the year, he said.

The Ministry of Agriculture is taking initiatives including contract farming to encourage more planned production and reduce such seasonal shortages.

Muktadir said coordinated improvements in energy, infrastructure, production and supply chains would be essential to stabilise markets and gradually reduce the cost of living.

He also said political and commercial relations between Bangladesh and India could not be viewed completely separately, arguing that stronger trade, investment and business connectivity would benefit both countries.

Referring to the European Union and other regional trade blocs, the commerce minister said greater regional cooperation was important for achieving sustained economic progress.