Dhaka: India and Bangladesh on July 15 made substantial progress in improving their bilateral economic relations including agreeing to initiate discussions on a Free Trade Agreement (FTA) as well as an investment protection and promotion agreement.

Though both the sides deferred till July 16 morning the much-awaited joint statement at the end of the talks, External Affairs Minister Yashwant Sinha said that talks began on a "positive note" and "our discussions have been very fruitful and we hope that we will be able to take necessary steps soon to strengthen our multi-faceted co-operation".

Sinha, who led the Indian delegation in the first Joint Economic Commission meeting in six years with the Bangladesh team led by his counterpart Morshed Khan, also announced that Bangladesh has agreed to initiate discussion on FTA by mid-October.

Later, a source in the Indian camp said that both sides agreed that it should be concluded as early as possible while they also agreed to an early finalisation of Bilateral Investment Protection and Promotion Agreement (BIPPA).

PTI