India has proposed to set up joint venture projects along the border with Bangladesh to facilitate optimum utilization of resources of both the countries for their mutual benefit.
It also emphasised on regional connectivity to faster trade and investment for the economic welfare of the people of the two countries.
The proposals emerged at a conference titled “India-Bangladesh Business Conclave” organised by Indian Chamber of Commerce (ICC) and India-Bangladesh Chamber of Commerce and Industry (IBCCI) at a city hotel yesterday.
Indian state minister for development of North Eastern Region (independent charge), external affairs and overseas Indian affairs VK Singh came up with the proposal of joint venture between the businesses of two neighbouring countries that he felt would generate more economic activities.
“Today we have a climate and the political values on either side of the border to ensure the huge utmost in the manner which will be for the benefits of the people,”
Referring Bangladesh’s success in readymade garments sector, he said: “I am quite sure that if the strengths of raw materials, technology and market availability of both the countries are combined together, we can be the foremost in textile industry. None can beat us.”
It requires linkages between business community of both countries and making use of each other’s strength so that each can have mutual benefit of it, he said.
Although India has given duty- and quota-free access for Bangladeshi items, Bangladeshi exporters are not fully exploiting the facilities. “Probably, Bangladeshi business community has not adequate understanding about the Indian market,” he said.
Speaking at the inaugural session of the daylong programme as chief guest, Prime Minister’s economic affairs adviser Mashiur Rahman put emphasis on indentifying the setbacks first to implement the agreements on bilateral and regional issues.
“We should be able to tell India that we do not like this, while India should be able to tell us that they do not like this,” he said. “Unless we can reach that level of understandings, the agreements signed will remain on conventional documents.”.
He suggested for multi-modal transport routes to get economic benefits from regional connectivity. “We have a transit agreement and transshipment takes place on ad hoc basis.”
He stressed on setting up warehouses at ports and adequate infrastructure to harness the benefits from regional transit.
He also requested the Indian government to remove tariff and non-tariff barriers at land customs stations that are affecting the trade and commerce between the two countries.
Meghalaya Chief Minister Mukul Sangma said some 443km border with Bangladesh signifies how important it is to explore business opportunities in Meghalaya. It is not the reason of only trade and commerce perspective, but it is the perspective from geo-political situation.
“Bangladesh can take advantages of agro-forest resources of north-east countries, including Meghalaya blessed with a lot of natural resources,” he said.
He proposed to facilitate joint venture in Meghalya in the fields of electricity and other areas along with Indo-Bangla border as the state has rich deposit of hydro-power, granite and limestone which is also being used by Lafarge in Bangladesh. Tourism can be another field of investment, he added.
Tripura Commerce and Industry Minister Tapan Chakraborty said development of transit and trans-shipment facilities via plains in Bangladesh and Tripura can help Bangladesh access and derive further economic advantages from a market that is estimated to be over $20bn, which is more than twice the present trade deficit of Bangladesh.
For promotion of trade and investment in the South Asian region, he requested Bangladesh to take seven-point into account – full operationalisation of Ashuganj port for Multi Modal connectivity, allowing use of Chittagong port for Indian goods, expedite survey of Akhaura-Agartala railway link and subsequent starting of construction and internationalising land costumes stations at Sabroom-Ramgarh.
High Commissioner of India in Bangladesh Pankaj Saran said Bangladesh should have more roadshows and business delegation into India as he thinks it is important that Bangladesh chambers, investors and board of Investment to travel different metropolitan cities and business centres of India to showcase the opportunities that Bangladesh has for Indian investment.
As per BoI figure, he said, Indian investment in Bangladesh so far stood at $2.8bn, but “we have to ensure more Indian Investment.”
FBCCI President Kazi Akram Uddin said even though there is a huge potential, Bangladesh has not been able to match India’s trade performance and our export to India continues to remain low. This has resulted in a growing bilateral trade deficit with India, he said.
He urged Indian government to solve problems, including non-tariff and para-tariff barriers. “Our exports cannot easily penetrate the Indian market because of the existence of non-tariff and para-tariff barriers. These include countervailing duties, certification, central and provincial sales taxes, luxury duties, and quality approval requirements.
The FBCCI president underscored the need for regional connectivity. He also said there is need for infrastructure development in border areas and upgrading the land customs stations.