Bangladesh, India chambers agree to speed up trade

The India-Bangladesh Chamber of Commerce and Industry (IBCCI) and Confederation of Indian Industry (CII) yesterday agreed to speed up efforts to increase bilateral trade and investment between the two countries.

Both business bodies adopted a joint declaration to identify opportunities for Indian investment, technology transfer and joint ventures in Bangladesh. The declaration also includes ways in which Bangladeshi investment can reach India.

IBCCI and CII co-organised the seminar on ‘Bangladesh as an investment destination’ at Sonargaon Hotel, chaired by IBCCI President Abdul Matlub Ahmad.

Industries Minister Dilip Barua, State Minister for Science and Technology Yeafesh Osman and Indian High Commissioner to Bangladesh Rajeet Mitter spoke. Citibank Country Officer Mamun Rashid presented a paper highlighting investment opportunities in Bangladesh.

Both sides also agreed to organise roadshows styled ‘Invest in Bangladesh’ at major cities in India.

According to the declaration, a joint team of CII and IBCCI will visit border sites, particularly the northeastern states of India and Bangladesh, to help governments improve infrastructure. About 20 top officials from Indian IT companies will visit Bangladesh in the six months to see business opportunities here.

Barua urged Indian businessmen to take advantage of the investment opportunities in Bangladesh. He said the country has an abundant but cheap labour force, no ceiling on investment, 100 percent foreign equity participation, tax exemption and profit repatriation.

“We seek your support and cooperation for meaningful industrialisation in Bangladesh,” said Barua.

Rashid identified seven areas for Indian investment — power, telecoms, health care, education, business process outsourcing, pharmaceuticals and fast-moving consumer goods.

He invited Indian businessmen to come and invest in the right sectors to tap the potential.

Dr Ganesh Nataranjan, chief executive officer of IT and ITES of CII, said India wants to take Bangladesh along with them to expand the IT business across India and some other countries.

The balance of trade heavily has favoured India for years. The deficit now stands at nearly $3 billion.

At yesterday’s meeting, Nitol-Niloy Group signed an agreement with India business conglomerate Tata Group to set up a shoe and a bicycle industry in Bangladesh. But no time was set yet for the investment.

OK Kaul, executive director of Tata International, told The Daily Star that a team would visit Bangladesh in May to see how investment could be materialised.