He was talking to Finance Minister M Saifur Rahman when he called on him at his Race Course Road residence in the evening.

"Under the leadership of Prime Minister Manmohan Singh, Bangladesh-India relations will flourish and trade and investment will enlarge," Saifur told the BSS after the meeting.

He described the discussions as "very good, fruitful and encouraging."

Saifur described India as "a very important regional neighbour" and recalled India's deep association with Bangladesh "right from the beginning."

He said the two countries were enjoying "very good political, economic and social relations."

Saifur said Singh assured him that trade imbalance should not continue for long as it is and it should be reduced on practical lines through corrective steps.

The finance minister said he also suggested export facilitation to Bangladesh for the northeast Indian market by removing non-tariff barriers like the problem of banking under which presently letter of credit (LC) opening requires permission from the central bank of India.

He said the Indian prime minister assured him that he would look into the matter.

Saifur said Singh had congratulated the Bangladesh government for restoring macro- economic stability.

Earlier in the day, the finance minister had talks with his Indian counterpart, P Chidambaram, at the latter's office.

Saifur said Chidambaram had agreed to reduce the trade gap between the two countries.

The Indian National Security Adviser JN Dixit called on Saifur Rahman at his hotel suite.