India and Bangladesh have initiated bilateral trade in Indian rupees. The launch event was organized by Bangladesh Bank and the High Commission of India in Dhaka on July 11, 2023.
- Trade settlement in Indian rupees will be applicable to export amounts from Bangladesh, while imports from India will still be settled in US dollars.
- The Eastern Bank and Sonali Bank Ltd will handle trade and transactions from the Bangladesh side, while the State Bank of India and ICICI Bank will handle operations from the Indian side.
- Bangladesh is India’s largest trade partner in South Asia, and India is the second largest trade partner of Bangladesh in Asia.
- The Reserve Bank of India has permitted banks from 18 countries, including Germany, Russia, Singapore, Sri Lanka, the United Kingdom, Myanmar, and Oman, to trade in rupees.
- With this development, Bangladesh becomes the 19th country to engage in trade with India using rupees.
Q.: Which of the following statements is true?
a) Bangladesh is India’s largest trade partner in Asia.
b) India is Bangladesh’s largest trade partner in South Asia.
c) India and Bangladesh do not engage in bilateral trade.
d) India and Bangladesh trade only in US dollars.
Ans : b) India is Bangladesh’s largest trade partner in South Asia.