India and Bangladesh today agreed to remove all barriers and improve infrastructure like road, port and rail links for enhancing bilateral trade.

This was agreed after a two-day successful visit by Prime Minister Manmohan Singh here.

During his visit, Singh announced to remove 46 textiles lines, of interest to Bangladesh, from India's negative list for the least developed countries under the South Asia Free Trade Area Agreement (SAFTA).

Import duties on these items from Bangladesh will be eliminated with immediate effect.

Singh and Bangladesh Prime Minister Sheikh Hasina reviewed the progress of bilateral trade.

"Recognising the need to address factors including non tariff and para tariff barriers and port restrictions that hamper the natural growth of bilateral trade, the Prime Ministers directed officials to identify and remove all barriers to unfettered bilateral trade," the joint statement said.

While the border haat at Baliamari has been started, both sides agreed to open new such local bazaars at different locations.

The two leaders also urged expeditious conclusion of power purchase agreement between Bangladesh Power Development Board (BPDB) and NTPC for purchase of 250 MW power from India by Bangladesh.

It was agreed that Bangladesh would procure the additional 250 MW of power from the open market in India utilising the full capacity of the power transmission line being established through inter-grid connectivity at Bheramara and Behrampur.

Both the Prime Ministers also noted that road, rail and waterways were building blocks to an interdependent and mutually beneficial relationship among the countries of the region.

The establishment of the physical infrastructure would promote exchange of goods and traffic, and lead to the connectivity of services, information, culture and people.