Indo-Bangladesh trade has been lopsided and tilted in favour of India. Attempts to facilitate two-way trade through SAPTA have not yielded results so far. This paper carries out a comparative static analysis using a gravity model and simulates the increase in India-Bangladesh bilateral trade under four hypothetical scenarios of differing tariff rate cuts. The results show that in a free trade regime, the increase in India's exports will be more than the increase in its imports from Bangladesh. Non-tariff barriers (NTB) are also a major deterrent to Bangladesh's exports to India, as India's NTB coverage ratio is much higher than Bangladesh.
