Petrapole, West Bengal’s key trading hub, launched the first-ever Rupee trade shipment to Bangladesh this Tuesday, carving out a new avenue for bilateral trade. Situated in North 24 Parganas, Petrapole serves as a critical portal for trade exchanges with the neighboring nation.
Prompted by an intent to shield the regional economy from global financial uncertainties, the Indian government has advocated for wider adoption of Rupee trade across various countries. Bangladesh stands to gain from this development as the initiative intends to stimulate economic growth and fortify the regional currency.
Kamlesh Saini, Manager of the Land Ports Authority of India (ICP Petrapole), conveyed to PTI the nature of this debut shipment – a Tata Motors vehicle chassis valued at INR 1.23 crore. He declared, “This shipment is in Indian Rupees, and it will give further fillip to exports,” suggesting a potential surge in bilateral trade ensuing from this innovative arrangement.
The Rupee trade agreement accords sanctions to banks across India and Bangladesh to establish nostro accounts, a vital financial instrument that enables transactions in foreign currencies. This substantial leap in financial integration between the two economies has been welcomed by industry observers.
Reflecting on the initiation of trade settlements in Rupees during a recent launch event in Dhaka, Bangladesh Bank Governor Abdur Rouf Talukder deemed it the “first step in a great journey.” This revolutionary trade protocol aims to streamline transactions, offering significant cost reductions and nurturing economic ties.
By September, a Taka-Rupee dual currency card will be launched, as announced by the Governor of Bangladesh’s central bank. With a commitment to simplifying cross-border transactions and diminishing costs, the dual currency card is a promising addition to the financial framework.
Current figures highlight that Bangladesh’s imports from India stand at a substantial USD 13.69 billion, contrasted with exports to India estimated at USD 2 billion. The precedent-setting Rupee trade shipment from Petrapole to Bangladesh is poised to reshape this dynamic, offering a considerable boost to regional trade and promoting economic stability.
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