A good number of Indian investors are now keen either in increasing their investments or to set up new manufacturing units in Bangladesh for manufacturing various products to export those items to other countries.
Despite the prevailing crisis relating to infrastructure facilities, regulatory framework, domestic laws, transparency and political stability, the Indian biggest companies have now targeted Bangladesh for setting up their plants not only for grabbing the huge domestic market but also to export their products to other markets.
They are showing interests in telecom, automobile, paints, pharmaceutical and other sectors.
Many Indian companies are thinking of setting up factories and export from Bangladesh back into India or to China or to Myanmar or wherever they find markets, Indian High Commissioner in Dhaka Pankaj Saran told the reporters yesterday, after attending a seminar on foreign investment in Bangladesh held in the city.
He did not explain why the Indian companies are interested to come here with investment.
Jetro (Japan External Trade Organisation) in a recent survey, however, found some 80% of Japanese companies are planning to expand their business activities in Bangladesh in next two years. This is due lowest production cost than any other countries as well as higher rate of return.
“This is really happening. I don’t want to mention the names but there are many companies who are now looking exactly like this. They will come in, set up factories and they will export from Bangladesh,” Pankaj said.
The Indian High commissioner, however, pointed out that lack of information in India about the prosperous Bangladesh is still a big problem as many Indians don’t really know enough about today’s Bangladesh.
“There is lack of information, there is lack of enough business-to-business contacts, and there is also lack of frequent exchange of business delegations between the two countries.”
Infrastructure, regulatory framework, domestic laws, transparency and political stability are other factors, which hinder the overall investment in Bangladesh, he added.
However, Pankaj categorically mentioned that Indian companies are showing interest in telecom, automobile, paints, pharma and other sectors.
“Now because of the line of credit, we are getting Indian consulting companies here for building bridges and for working in the railway sector.”
According to Bangladesh Bank data, a total of US$42m Indian investment came to Bangladesh in the last fiscal and the amount was about $28m in the previous fiscal.