Based on the International Chamber of Commerce Bangladesh (ICCB), Bangladesh's export to India can increase by 300 percent if it can capture just 1% of India's total imports.

Despite the huge potential, India-Bangladesh bilateral trade was only worth $11 billion in fiscal 2021-22, with exports from Bangladesh to India totaling only $1.27 billion, according to the ICCB's quarterly news bulletin for April-June this year.

The World Bank estimates that if the countries implement a free trade agreement, the country's exports to India could increase by 182 percent from their current level. Improving transport connectivity between the two sides could result in an additional 297 percent increase in exports.

South Asia is one of the world's least integrated regions in terms of trade and people-to-people contact, with intra-regional trade accounting for only one-fifth of its trade potential, according to the ICCB.

A Bangladesh, Bhutan, India, and Nepal electricity market would save an estimated $17 billion in capital costs. However, opportunities for growth through regional trade in the region remain largely untapped, and intra-regional trade in South Asia remains far below its actual potential.

At the moment, regional trade in South Asia accounts for only 5% of the estimated $23 billion in trade flow, far short of the $67 billion potential trade.

In comparison, the trade ratios in other regions are as follows: 50% for East Asia, 26% for ASEAN, 67% for the European Union, 62% for NAFTA, and 22% for LAC and COMESA.

According to the report, Bangladesh and other countries in the region trade on better terms with distant economies than with their neighbours.