Editorial
Economic ties with India
Sharma visit injects dynamism
The visit of Indian Commerce and Industry Minister Anand Sharma to Dhaka has provided an impetus to closer and mutually beneficial economic relations between Bangladesh and India. The outcome has already taken a tangible shape in certain areas and, in some other spheres, signs of cooperation can be seen.
First and foremost, duty free garment import quota from Bangladesh has been raised to 10 million pieces from 8 million under South Asia Free Trade Agreement. In the last three months alone India lifted 47 percent of the 8 million quota. Overall, compared with US$ 304 million worth of total export to India in the last fiscal year, the first three quarter of the current fiscal has already yielded US$ 359 million in export to the country. In fact, Bangladesh's export to India has increased six times in the last few years. But obviously the trend needs to be taken forward in a huge way to bridge the trade gaps with Bangladesh. Only a good beginning has been made.
Clearly, scope exists to diversify export from Bangladesh if the certification procedures are uncluttered. We must follow up on the Indian assurances for considering our proposal to withdraw duty on 61 products including 54 RMG items. Bangladesh's lifting of duty on import of jute products and India supplying cotton under a special quota are certain to prove mutually advantageous.
The Indian commerce and industry minister has held out the prospect of Indian companies investing US$ 3.5 billion in our telecom, food processing, pharmaceuticals and manufacturing sectors. This is expected to materialise in a few years' time.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has urged the Indian minister to relax India's trade and investment policy. As AK Azad, president of FBCCI, suggested, Bangladeshi entrepreneurs are keen to invest in Indian services sector, an access India could provide on a reciprocal basis. Because "Bangladesh has a unilateral, liberal and open services and investment policy under its domestic regulations for the Indian investors."
We are still in a confidence-enhancing process, so that it would be useful to break new grounds.
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