New Delhi, India (BBN)-The Union Cabinet on Saturday approved the agreement on coastal shipping between India and Bangladesh to carry out coastal movement of goods between the two countries.
Exim trade between India and Bangladesh would be benefited by way of reduction in freight charges, reports Zeenews.
It will also improve the utilisation of port capacities of Indian ports and open up new opportunity for Indian coastal vessels.
It will also help in decongestion of roads especially at the Land custom stations/integrated check posts at the Indo-Bangladesh boarder.
The Indian ports serving as transshipment ports for Bangladesh cargo will derive benefits by way of enhanced throughput as a result of Indo-Bangladesh coastal trade.
India and Bangladesh shall render the same treatment to the other country's vessels as it would have done to its national vessels used in international sea transportation.
The commencement of coastal shipping between the India and Bangladesh will increase bilateral trade between the two countries and lower down the cost of transportation of Exim cargo.
India's trade with Bangladesh has grown rapidly during the past few years. Bangladesh is now India's largest trade partner in South Asia.
The opening up of the coastal route between India and Bangladesh is expected to provide an alternative route for the transportation of Exim cargo between the two countries.