Bangladesh Prime Minister Khaleda Zia met with her Indian counterpart Manmohan Singh and shared mutual concerns on terrorism. While they have decided to take tentative steps towards terrorism, larger issues from Bangladesh's perspective assumed significance. It is not clear if India got to raise its concerns or issues at all.

Bilateral trade deficit was probably the most important issue that she raised with Singh and Trade & Commerce Minister Kamal Nath. Nath had some interesting proposals of creating a country-specific free trade agreement (FTA) in addition to the South Asian Free Trade Agreement (SAFTA) just like how India had an FTA with Sri Lanka. In that case, Indo-Sri Lankan trade deficit dropped from 1:17 to 1:4 and also made India the third largest investor in that country. Zia reiterated her strong concerns on the trade deficit and other than that did not come up with any proposals. It was almost like she was looking to India to solve the problem for her country. Nath insisted that each country look at their baskets of products that they could focus and have that as the foundation to resolve this issue.