India and Bangladesh propose two task forces to boost trade, investment

Indian industry representatives have proposed two joint business task forces with Bangladesh to push bilateral trade and investment into executable projects, with infrastructure, digital technology and emerging industries placed at the center of the proposed mechanism.

The proposal was presented during a meeting between Bangladesh Commerce Minister Khandakar Abdul Muktadir and an Indian business delegation at the Ministry of Commerce on August 18. The delegation included senior representatives of India’s leading business chamber and executives from major companies, including some with existing investments in Bangladesh.

The proposal by the Confederation of Indian Industry (CII) covers one task force focused on infrastructure, private investment and public-private partnerships, and another aimed at high-tech and future industries. The 18-member CII delegation, led by director general Chandrajit Banerjee, had arrived in Dhaka on Monday and had already met some government stakeholders. The commerce secretary, senior officials and delegation members were also present at the meeting.

For cross-border supply chains, Indian business leaders raised concerns about the movement of raw materials and finished goods through Bangladesh’s land ports, especially Benapole. The minister said stronger cargo-handling capacity at Benapole and smoother border movement could reduce transport and material costs and create room for higher bilateral trade.

CII representatives also emphasised local manufacturing as a way to reduce import dependence and accelerate project execution. Citing a joint venture with Energypac, they said shipments through land ports currently take 40-45 days, and that more domestic production could cut such delays.

The delegation also sought rationalisation of duty structures on energy-efficient steam technologies, saying such systems could lower gas consumption by 10-35% across Bangladesh’s textile, ready-made garment and food-processing sectors.

Muktadir welcomed the task force proposal and said Bangladesh needs large-scale infrastructure investment to move towards a trillion-dollar economy. He called for wider trade, investment, industrial cooperation and private-sector participation so that the two neighbours’ geographical proximity can translate into economic gains. He also highlighted the need to remove trade barriers, normalise trading conditions, ease visa procedures and deepen business-to-business links, and, referring to recent trade restrictions, called for bilateral discussions to restore trade to previous levels.

The proposal is expected to be discussed with the Federation of Bangladesh Chambers of Commerce and Industry. The meeting concluded with both sides agreeing to prioritise actionable projects, stronger B2B engagement and institutional mechanisms to support investment and joint ventures across infrastructure, manufacturing, technology and emerging sectors.