India evaluating implications of FTA as Bangladesh mulls RCEP membership

India is worried because of Bangladesh's greater dependence on China for imports as compared to India and fears it can become an issue if Bangladesh joins RCEP

Bangladesh’s willingness to join China-backed trade bloc Regional Comprehensive and Economic Partnership (RCEP) has made India wary, with New Delhi evaluating the possible implications before starting free-trade agreement (FTA) talks with Dhaka, people aware of the matter said.

Bangladesh largely depends on Indian products and is India’s seventh largest export market. Hence, the trade balance is tilted massively in favour of India.
 

On the other hand, China is Bangladesh’s largest import partner, followed by India.
 

India is worried because of Bangladesh’s greater dependence on China for imports as compared to India and fears it can become an issue if Bangladesh joins