Journal Press India^®

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Trade has long been positioned as a central driver of economic development and poverty reduction in least developed countries (LDCs). This paper critically examines the trade dynamics of three South Asian LDCs—Bangladesh, Nepal, and Myanmar—focusing on their complex relationship with India. Drawing on secondary data from UNCTAD, WTO, and World Bank, the study explores how trade openness, balance of payments (BoP), and foreign direct investment (FDI) shape development outcomes. The analysis evaluates the promises and pitfalls of trade as a poverty reduction tool, the role of fair-trade arrangements, and India’s broader contributions through capacity-building and preferential schemes. Findings reveal that while Bangladesh has leveraged trade to achieve significant export-led growth, Nepal and Myanmar continue to struggle with structural vulnerabilities, trade imbalances, and political instability. The paper concludes that India’s engagement—through tariff preferences, infrastructure investment, and technical cooperation—creates enabling conditions but does not uniformly translate into poverty reduction without domestic readiness. Policy implications emphasize diversification, governance reforms, and sustainable integration strategies for LDCs.

Keywords

Least developed countries; Trade openness; Balance of payments; Foreign direct investment; India–LDC relations

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Weblinks

• https://ecdpm.org/work/emerging-economies-and-africa-volume-3-issue-4-april-2014/can-indias-duty-free-scheme-foster-trade-and-development-in-african-least-developed-countries
• https://unctad.org/press-material/world-investment-report-2023
• https://unctad.org/publication/least-developed-countries-report-2020
• https://unctad.org/system/files/official-document/ldcr2020_ch0_overview_en.pdf
• https://unctad.org/publication/least-developed-countries-report-2018
• https://unctad.org/system/files/official-document/ldcr2018_en.pdf