India and Bangladesh which share about 4,000 km of border should allow free movement of goods to enhance bilateral trade and investment, a Ficci study has said.
The freeing of cargo movement by the two countries will also check smuggling on the borders, the study on the India-Bangladesh bilateral relations said.
It said the two-countries should sign a bilateral transport agreement, which would "to a large extent help in overcoming the present requirements of trans-shipment of the cargo at the border points".
Geographical proximity and land connectivity provides immense opportunities for mutual transit arrangements for trans-border trade, it said.
Poor road connectivity and under-utilisation of sea ports are also hampering the trade.
Ficci said the two-countries need to check illegal trade or smuggling to increase the bilateral commerce currently estimated at $3.5 billion. It suggested that by giving more market access to each other, the two sides could check trade through "unofficial" means.
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The study found that the trade could increase significantly if the two sides reduce customs duties and enhance exchange of information.
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The study also favoured Bangladesh permitting more Indian banks and employ experienced Indian banking personnel.
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