According to an official announcement, the first-ever Rupee trade shipment from West Bengal's Petrapole border to Bangladesh was successfully conducted. Petrapole, situated in North 24 Parganas, serves as a crucial land port for bilateral trade between India and its neighboring country, Bangladesh.

The Indian government has been actively promoting Rupee trade with various nations to conserve foreign exchange reserves, aiming to reduce reliance on the US Dollar and strengthen regional currency and trade. This initiative is expected to have a similar impact on Bangladesh, fostering economic cooperation and trade growth between the two countries.

The landmark shipment was a consignment of vehicle chassis from Tata Motors, valued at Rs 1.23 crore, as reported by Kamlesh Saini, the manager of the Land Ports Authority of India (ICP Petrapole), in an interview with PTI. Notably, the transaction was conducted entirely in Indian Rupees, providing a significant boost to India's export activities.

Both banks in Bangladesh and India have been granted permission to open nostro accounts, facilitating foreign currency transactions. These accounts enable banks to hold foreign currency in the bank of another country, streamlining cross-border trade settlements.

Earlier this month, at the Rupee trade launch event in Dhaka, Bangladesh Bank Governor Abdur Rouf Talukder expressed his optimism, describing the initiation of trade settlement in Rupees as the "first step in a great journey." The introduction of the Taka-Rupee dual currency card, scheduled for launch in September, is anticipated to further reduce transaction costs during trade with India.

According to the latest available data, Bangladesh's imports from India stand at USD 13.69 billion, while exports to India amount to USD 2 billion. This milestone in the Rupee trade marks a significant development in the economic ties between India and Bangladesh, promoting mutual growth and cooperation in the region's trade landscape.

Image source: Business standard