India yesterday urged members of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (Bimstec) to consider forming a preferential trade agreement among themselves to foster intra-regional trade and investment while also enhancing regional competitiveness.

Piuysh Goyal, the commerce minister of India, said Bimstec members should re-examine their priorities with regard to trade negotiations so that the delayed free trade agreement can be finalised.

Goyal was speaking at the inaugural edition of the Bimstec Business Summit organised by the Confederation of Indian Industry, in partnership with the Indian Ministry of External Affairs in New Delhi.

Bimstec consists of Bangladesh, Bhutan, Nepal, India, Sri Lanka, Myanmar and Thailand.

Goyal said there is a need to reassess the reasons behind the delay in finalising the BIMSTEC free trade agreement.

He said the Bimstec needs to come up with a set of cogent recommendations that are acceptable to all seven member countries to this end.

"The trade negotiating committee and business community should consider a preferential trade agreement to begin fostering intra-regional trade and investment and enhance regional competitiveness," the Indian minister said.

Goyal called on the Bimstec members to introspect on their current trading relations, noting that trade among the Bimstec countries is small.

"There's a long way to go before we can achieve its full potential," he added.

Goyal also said there should be a focus on reducing trade deficits, strengthening trade facilitation and partnerships in e-commerce, digital public infrastructure and better integration of customs with the help of technology.

Goyal underlined the need for the computerisation of border checks and faster clearances of import-export online applications to ease the business process.

He said there should also be a focus on strengthening supply chains and removal of tariff and non-tariff barriers by adopting international standards and ensuring seamless transport connectivity among Bimstec members.

Goyal called for greater integration of startups and entrepreneurs of the seven member countries to foster investment, trade and tourism.

Speaking on the recent developments in Bangladesh, Goyal expressed deep concern and wished for a bright future and a smooth transition of governance in the country.