However, according to official statistics, the country's export to India in the first half of FY06 posted an encouraging 42 percent rise from the corresponding period of FY05, compared to a 14.85 percent rise in import from the next-door neighbour.

Bangladesh's export to India in July-December 2005 was $105 million compared to $74 million in the first half of FY05. On the other hand, its import from India in July-December FY06 was $1.18 billion, or about $170 million higher than the $1.01 billion import in July-December FY05.

So, the country's trade deficit with India in the first half of FY06 was $1.07 billion, which was $945 million in the corresponding period of FY05.

Commerce ministry sources said the hike in export volume this fiscal year was due mainly to the duty-free access of 91 products to the Indian market and elimination of a few non-tariff barriers.

Of the products enjoying duty-free access, readymade garment, polythene sheet, plastic hanger, toiletries, glass and machine parts have contributed most in the export growth.

Battery, raw jute, jute goods, Jamdani sari, hilsa fish and chemical fertiliser also saw increased entrance to the neighbouring market, the sources said.

During her recent visit to India, Prime Minister Khaleda Zia sought duty-free access of more Bangladeshi products from the Indian government to reduce the huge bilateral trade gap. To achieve that, New Delhi suggested signing a free trade agreement between the two neighbouring economies.

Sources said, some non-tariff barriers like mandatory testing required by India, inadequate banking facility and poor infrastructure at land ports are also hindering the country's export growth to India.

The country's export earning from India was $144 million in FY05, $89 million in FY04 and $84 million in FY03. Its import from India was $2.03 billion in FY05, $1.59 billion in FY04 and $1.35 billion in FY03.

Huge quantities of Indian goods also get smuggled into Bangladesh regularly that many a businessman reckons are equal, if not more, in worth to the legal imports.