Improvement in connectivity between Bangladesh and the North Eastern region of India is essential to support the regional market needs and improve bilateral trade with India.
Experts made the remark at a seminar on “Improved Connectivity: Unlocking Economic Potential between India and Bangladesh,” jointly organized by the High Commission of India in Bangladesh and Dhaka Chamber of Commerce & Industry (DCCI) at a city hotel on Thursday.
Attending the event as chief guest, Adviser to the Prime Minister on Economic Affairs Dr Mashiur Rahman said, “In terms of export and import, we may think of using local currencies for our bilateral trade.
“At present, the investment environment in Bangladesh is very friendly therefore we invite more Indian companies to invest here in Bangladesh either in the form of joint ventures. In terms of railway connectivity, few development projects, such as the construction of Jamuna Railway Bridge, are under progress, which will create ample opportunities for bilateral trade.”
Dr Rahman also requested to consider the issue of anti-dumping duty on raw jute export from Bangladesh. He underscored the importance of seamless transshipment of Bangladeshi products through India, read a press release.
He spoke in favour of an easier visa process for smooth communication of businessmen of both countries.
DCCI President Barrister Md Sameer Sattar said, “The bilateral trade between Bangladesh and India is $16 billion in FY2022. But there are scopes to expand the bilateral trade to minimum $20 billion through addressing non-tariff barriers and connectivity related challenges.”
He then referred to the World Bank’s report that seamless transport connectivity of India and Bangladesh has the potential to increase national income by 17 per cent in Bangladesh and 8 per cent in India.
High Commissioner of India in Bangladesh HE Pranay Verma said, “Smooth connectivity is crucial for boosting trade and commerce between our two countries. Land routes, railways and even waterways between Bangladesh and India can be expanded more.
“During the last decade, the bilateral trade between Bangladesh and India remarkably increased and comprehensive economic partnership agreement (CEPA) could be a game changer for both the countries in terms of trade and commerce.”
He continued, “Stronger connectivity is the driving force for economic prosperity, he noted. Infrastructure development of seven land customs stations is under progress that will help boost both-way trade.
Verma mentions that currently seven border haats are being operated, but in future this number will be increased.
Officials from the Indian High Commission made the presentation on connectivity initiatives between India and Bangladesh. The presentation highlighted that 40 per cent trade is happening through land ports of which 70 per cent is happening through Benapole-Petrapole land port.
In the last five years bilateral trade has doubled and during the last three years Bangladesh’s export to India has doubled. They also underscored on developing inland waterways, coastal shipping, air and railway connectivity.
Bangladesh has the potential to do more business in the Northeastern region of India . India’s access to Mongla and Chattogram port is beneficial both for Bangladesh and India. After completion of the India-Bangladesh pipeline, 1 million metric tonnes of diesel per year can be transported to Bangladesh.
Farooq Sobhan, former foreign secretary of Bangladesh; Anis Ud-Dowlah, former president, MCCI; DCCI’s former presidents Matiur Rahman, Asif Ibrahim, Md Sabur Khan, Shams Mahmud, DCCI directors Khairul Majid Mahmud and Malik Talha Ismail Bari also spoke on the occasion.
Speakers urged officials concerned to address the issues of tariff and para tariff barriers and anti-dumping duties on jute through CEPA. They also invited Indian entrepreneurs to invest in the ICT and healthcare sector in Bangladesh.
They also stressed on easing visa procedures especially business visa for Bangladeshi businessmen to facilitate trade and investment activities. They also requested to increase more border haats and increase infrastructure of land ports in the Indian part.
Most of the Indian investments in Bangladesh are G2G, and speakers pointed out that private investment should come more. DCCI Senior Vice President S M Golam Faruk Alamgir Arman made the closing remarks.
