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The Comprehensive Economic Partnership Agreement between Bangladesh and India, if signed, will be a game-changer for improving bilateral trade and investments between the two next door neighbours, says Indian High Commissioner to Bangladesh Vikram Kumar Doraiswami.
The Indian High commissioner came up with the remark while addressing a seminar on India-Bangladesh bilateral trade and connectivity held in the capital on Sunday.
“Dhaka and New Delhi are in discussions to sign a CEPA to boost bilateral trade and investment and if this agreement is signed, both the two countries will be benefited as the proposed CEPA will play the role of game-changer in trade and investment between Bangladesh and India, ‘’ said Vikram Doraiswami.
He said that Bangladesh’s port infrastructure, road, rail and waterways are being developed by the Indian Line of Credits in order to attain the bilateral trade opportunities. India is willing to extend more LOCs for the development of the country.
As Bangladesh becomes a developing nation after graduation, the government has taken the initiative to ink the deal to safeguard duty privileges in international trade after the country graduates from the grouping of the least-developed country. Bangladesh Foreign Trade Institute and Indian Foreign Trade Institute are preparing the study report for CEPA. Both the two countries agreed to sign this agreement at the commerce secretaries’ level meeting.
Addressing the seminar, Vikram Doraiswami said, “India is a big development partner to Bangladesh as India provides the best opportunity to Bangladesh than any other country in the world. Bangladesh is a good home for Investment to Indian Companies as well. Indian entrepreneurs are also looking for opportunities to invest in Bangladesh. As the current investment amount is not good enough, they want to invest more in Bangladesh.”
During a powerpoint presentation, Pramyesh Basall, second secretary (commercial) of the Indian High Commission said, “We are trying to accelerate the growth and prosperity of bilateral trade and investments. Bilateral trade deficit was $ 7748 million in FY ‘18. After that it was declining to $ 5458 million FY’19 and $ 4763 million FY’ 20. Bangladesh’s export to India is $ 1279 million FY21, which is the highest among other Asian countries.
Referring to a World Bank study report, he said, “Both countries’ trade potential is $16 billion. But some tariff and non-tariff barriers create obstacles in trade opportunities. Bangladesh’s export to India could increase by 182 per cent and India export to Bangladesh by 126 per cent if the two countries signed a free trade agreement.”
“Improving transport connectivity could increase exports even further, yielding a 297 per cent increase in Bangladesh exports to India and a 172 per cent increase of India exports to Bangladesh. Seamless transport connectivity between both countries has the potential to increase national income by as much as 17 per cent in Bangladesh and 8 per cent in India.”
According to Bangladesh Investment Development Authority, total registered Indian FDI Investment stands at $3.55 billion (Tk. 29800 crore). India and Bangladesh companies have signed agreements worth nearly $10 billion of Indian investments, mainly in the power and energy sectors, during the visit of Prime Minister Sheikh Hasina to India in April 2017. Indian 355 companies have invested in Bangladesh.
“With the Indian economic zones coming up at Mongla and Mirsarai, Indian FDI is bound to increase manifolds. These two zones will be developed very soon. The process of appointing developers is now at the final stage to develop the zones,” said Indian High commissioner.
Indian companies looking for opportunities in food processing, agriculture machinery, automobile, education and IT service future growth to invest in Bangladesh, he added.
Indian High Commission railway adviser Anita Barik said, “17 railway projects are at various stages of implementation under Indian LOCs. Total value of the railway project is $ 1928.92 million. The current scenario of the railway project is 16 per cent completed, 36 per cent implemented, 42 percent under tendering process while 5 per cent at DPP stage. “
Indian Exim Bank has extended four government of India supported LOCs to Bangladesh. The total credit commitments is $7.86 billion under LOC. Bangladesh is the largest recipient of Indian LOC, 26 per cent of total Indian LOC portfolio.
