India and Bangladesh have resumed talks through their joint working group on trade after a three-year break, reopening a crucial bilateral mechanism that had remained dormant even as commercial tensions deepened. The restart comes at a sensitive moment for South Asian trade, with both sides under pressure to address bottlenecks that have slowed the movement of goods, complicated market access and widened the perception of asymmetry in the relationship.
Trade Channel Reopens
The working group's return to the table is significant less for immediate breakthroughs than for the fact that it restores a formal process for managing disputes and negotiating incremental fixes. For years, the two countries have relied on a dense but uneven trade relationship in which India remains a major supplier of industrial goods, raw materials and consumer products, while Bangladesh has sought more predictable access for its exports, especially in sectors such as garments, agro-processing and light manufacturing.
The hiatus had left several issues to drift without resolution. With the group now reconvened, officials are expected to revisit the practical obstacles that have repeatedly surfaced in bilateral commerce, including delays at land ports, customs procedures, inspection requirements and restrictions on specific routes used for transit and transshipment. The talks are also likely to examine how to reduce friction in cross-border logistics, an area that has become increasingly important as supply chains in the region grow more interconnected.
Port Curbs Under Scrutiny
Port curbs are among the most sensitive subjects on the agenda. Bangladesh has long argued that limitations on the use of Indian ports and inland waterways raise costs and reduce the competitiveness of its exports. For Dhaka, access to more efficient routes is not merely a trade convenience but a structural issue tied to export growth and diversification.
India, meanwhile, has been cautious about opening logistics channels in ways that could create regulatory complications or domestic market concerns. That caution has often translated into a stop-start approach, where permissions are expanded in some areas but tightened in others. The result has been a recurring complaint from Bangladeshi exporters that policy uncertainty is as damaging as formal restrictions.
The renewed talks are therefore likely to focus on whether existing port and transit arrangements can be made more predictable, transparent and commercially viable. Even modest improvements could ease pressure on border infrastructure and lower transaction costs, though any larger liberalisation would require political as well as administrative agreement.
Duty-Free Access Debate
Bangladesh is also expected to press for broader duty-free access to the Indian market, a demand that has gained urgency as the country seeks to sustain export-led growth. Duty-free access has been a longstanding issue in bilateral trade discussions, but the gap between the scale of Indian exports to Bangladesh and Bangladeshi exports to India continues to shape the debate.
The trade imbalance is not simply a matter of numbers. It reflects differences in industrial scale, product composition and market access conditions. India's larger manufacturing base gives it a natural advantage, but Bangladeshi officials have argued that non-tariff barriers, certification hurdles and customs procedures further tilt the field. These concerns are likely to feature prominently in the working group's deliberations.
For New Delhi, the challenge is to balance market openness with domestic sensitivities and regulatory standards. For Dhaka, the priority is to secure more reliable access without having to negotiate each obstacle individually. The working group offers a venue to narrow that gap, though progress will depend on whether both sides are willing to treat trade facilitation as a strategic objective rather than a narrow technical issue.
The resumption of talks also carries broader regional significance. India and Bangladesh have built one of South Asia's most consequential bilateral relationships, spanning energy, connectivity, security and commerce. Trade disputes have not derailed that partnership, but unresolved frictions can erode trust and slow the momentum of wider cooperation. By restarting the working group, both governments are signalling that they want to manage differences through institutional dialogue rather than allow them to harden into political irritants.
Still, expectations should remain measured. The agenda is crowded, the grievances are longstanding and the commercial imbalance is unlikely to disappear quickly. What the talks can do, however, is create a structured path for addressing the most immediate barriers to trade. In a relationship where geography makes cooperation unavoidable, even incremental progress can carry outsized economic value.