India, Bangladesh discuss joint task force to boost trade, investment amid push to ease barriers

India and Bangladesh are discussing the formation of a joint task force to expand bilateral trade and investment, with New Delhi seeking greater participation from Bangladesh’s private sector as the two neighbours explore ways to address barriers affecting commercial ties.

India’s Deputy High Commissioner in Dhaka Pawankumar Tulshidas Badhe discussed the proposal during a meeting with M Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the business body said on Sunday.

“The Indian High Commission is maintaining regular communication and discussions with the governments of both countries to expedite the formation of the task force,” Badhe was quoted as saying.

Businesses to play role

Badhe said the proposed mechanism could help expand trade and investment by bringing businesses and other stakeholders from India and Bangladesh into closer engagement. He sought cooperation from Bangladesh’s private sector, particularly the FBCCI, to take the initiative forward.

Hoque backed the proposal, saying a joint task force could strengthen economic cooperation and increase bilateral trade. He called on entrepreneurs and businesses from both countries to work together to identify sectors with investment and trade potential.

The two sides also discussed tariff and non-tariff barriers and measures to strengthen commercial relations.

The proposed mechanism assumes significance as businesses on both sides seek greater predictability in cross-border trade despite recent strains in the broader bilateral relationship.

Trade barriers discussed

Bangladeshi exporters have raised concerns over non-tariff barriers in India, including testing and certification requirements, customs procedures, licensing rules, restrictions at ports and high logistics costs.

India introduced restrictions in 2025 that limited the entry of several categories of Bangladeshi goods, including ready-made garments, processed food, plastics and furniture, through specified land ports.

Addressing such barriers is expected to be among the issues taken up as businesses and officials explore ways to expand commercial engagement.

The latest discussions come two days after the FBCCI and Confederation of Indian Industry (CII) agreed to establish business-to-business task forces to identify and address obstacles to trade and investment.

Investment beyond energy

During Friday’s FBCCI-CII meeting in Dhaka, Hoque said Bangladesh could draw on India’s experience in mobilising private and foreign investment for infrastructure development.

He also called for Indian investment to expand beyond the energy sector, particularly as Bangladesh deals with challenges involving gas and electricity supplies.

CII Director General Chandrajit Banerjee said Indian businesses were interested in expanding investment in Bangladesh, including in infrastructure, healthcare and emerging sectors.

The proposed government-level joint task force, alongside the business-to-business mechanisms being developed by FBCCI and CII, could provide parallel channels for resolving regulatory obstacles and identifying new areas of cooperation.

Visa processing eased

Badhe also said India had eased visa processing for Bangladeshi nationals across categories and that the Indian High Commission was currently issuing around 5,000 visas a day.

Visa services had emerged as another area of concern in bilateral exchanges, particularly for Bangladeshis travelling to India for medical treatment, business and other purposes.

The latest engagement indicates an effort by both sides to maintain momentum in economic ties by focusing on trade facilitation, investment and private-sector cooperation.