We are observing this year's Republic Day in the wake of the devastating Tsunami that caused extensive damage to life and property in more than ten countries in South and South-East Asia. This unprecedented tragedy has left over 200,000 people dead and rendered over a million homeless. The Government of India has mobilized a massive relief operation, providing assistance to thousands of people not only in India but also in other affected countries including Sri Lanka, Maldives and Indonesia. I would like to take this opportunity to thank all members of the Indian community in Bangladesh who have so generously contributed to the relief effort. India's response in the face of this crisis demonstrates that we have both the national will as well as the resources to meet this unprecedented challenge. The global response to this incident, particularly at the level of the ordinary people, reinforces my belief in the resilience of the human spirit, its determination to overcome any challenge and its extra-ordinary resolve in the face of adversity. We need only recall the many stories of exceptional courage shown by people in the face of this devastation to remind ourselves of this spirit of resilience which lies within us all.

Equally, in 2004, devastating floods affected many parts of Bangladesh as also the states of Assam and Bihar in India, resulting in loss of life and causing extensive damage to property, and leading to the erosion of valuable developmental gains. India has pledged assistance of Rs.100 crore in flood relief assistance to Bangladesh to help mitigate the damage. This assistance is a reflection of the goodwill that the people of India have always had for the friendly people of Bangladesh.

During 2004, India witnessed yet another smooth transition of power after our 14th General Elections held in the month of May, when the new UPA government was sworn-in. This demonstrated once again India's strength as a mature, pluralistic and secular democracy and as a factor for stability in the region. The continuity in our national policies has been reaffirmed by our Prime Minister Dr. Manmohan Singh, when he said, while addressing the CII Partnership Summit in Kolkata earlier this month "Despite many changes in Government at the Centre, the economic and foreign policies that were initiated in the early 1990s have stood the test of time and there is today a broad national consensus around them".

The Government of India has reiterated our foreign policy focus and the high priority we attach to India's relations with our neighbours. Speaking at the inaugural BIMST-EC Summit in Bangkok in July 2004, Prime Minister Dr. Manmohan Singh said "We in India view our quest for closer and mutually beneficial ties with all our neighbours as a logical response to the challenges with which we contend". Prime Minister Dr. Manmohan Singh further underlined that "we have to work for peace and for security, and to create a new climate in which we can concentrate on our primary responsibility a better life for all our peoples. The solutions to some of these problems lie with Governments. Equally, we have to reach out beyond, to find imaginative answers to intractable issues. This is the way we have chosen in India".

These principles equally mark our approach to India's relations with Bangladesh. We remain committed to working towards deepening and further strengthening the ongoing multi-faceted friendship and cooperation between the Governments and the peoples Bangladesh and India. The meeting of our two Prime Ministers, on the sidelines of the BIMST-EC inaugural summit in Bangkok on July 31st 2004, has re-affirmed that this is indeed a shared commitment. This meeting has given an important impetus to Bangladesh India bilateral relations.

During the preceding 12 months I have had the opportunity to travel in Bangladesh and to meet a wide cross section of the people, from Bandarban to Rajshahi and from Kushtia to Sylhet. These interactions have reinforced my conviction that our two countries have much to share and give each other. Our common history and civilizational heritage remains the cornerstone of our relations. Nothing illustrates this more effectively than the fact that we are perhaps the only two countries in the world, whose respective National Anthems are composed by the same poet, Gurudev Rabindranath Tagore. My interactions have equally convinced me that peoples of Bangladesh and India desire and keenly expect that Bangladesh - India relations can and should be taken to a new higher level. I believe it is important for us to acknowledge and build upon this trend for the mutual benefit and prosperity of both our peoples.

It is only through regular dialogue, based on mutual trust and understanding that relations can be strengthened and new areas for cooperation can be identified. It is only through dialogue held in a spirit of friendship that differences can be addressed so as to arrive at constructive, practical and mutually acceptable solutions. The very process of dialogue generates the positive momentum so necessary for achieving a breakthrough. It is with this belief that the preceding year has witnessed a series of high level exchanges and visits on the bilateral front between Bangladesh and India, each of which have helped pave the way for increased cooperation between our two countries.

At the ministerial level, successful visits to India include those undertaken by Finance Minister, Saifur Rahman, Foreign Minister Morshed Khan, Commerce Minister Altaf Hossein Chowdhury, Science & ICT Minister Abdul Moyeen Khan and State Minister for Civil Aviation and Tourism, Mir Mohammad Nasiruddin. Foreign Minister Morshed Khan was among the first senior foreign dignitaries to be received in New Delhi by the new UPA Government, as the Special Envoy of Hon'ble Prime Minister Begum Khaleda Zia. He was received with the traditional warmth that characterizes Bangladesh-India relations and his message to the new government in India was seen as reflecting Bangladesh's commitment to work towards strengthening our friendly bilateral relations. The visit of Finance Minister Saifur Rahman has been significant and of key importance in identifying mechanisms for enhancing our bilateral trade and investment relations, including through cooperation in energy matters and expansion of transportation infrastructure and linkages, such as through our railway network. Commerce Minister Altaf Hossein Chowdhury was our Guest of Honour at the India International Trade Fair where, for the first time, twenty-five companies from Bangladesh participated. That Bangladeshi companies bagged orders worth US$ 2 million during this Fair shows the positive prospects and growth potential for our bilateral trade, as well as the immediate benefits arising from enhanced business-to-business interactions.

Among the most visible and effective business-to-business interactions took place during the successful visit to India in July 2004, at the invitation of the Confederation of Indian Industry, by Mr. Mahmudur Rahman, Executive Chairman of the Board of Investment (BOI) of Bangladesh. He was accompanied by a delegation of leading entrepreneurs and business executives of Bangladesh. It is by now well-known that the highlight of this visit was Mr. Mahmudur Rahman's meeting with India's Ratan Tata in Mumbai, which paved the way for the Tata Group's planned investments of US$ 2 billion in Bangladesh. The Tata Group has signed an Expression of Interest document with the Bangladesh Board of Investment on 13th October 2004 for their investments in the steel, fertilizer and power sectors in Bangladesh. They are presently in the process of preparing feasibility studies to determine the commercial viability of these projects, after which detailed negotiations with the concerned authorities in Bangladesh will commence. Here, indeed, a specific example of a win-win solution, this time through partnership between the public and private sectors.

Indeed all of us in India remain committed to Bangladesh's economic development and its continued prosperity. India sees Bangladesh as not only a close neighbour but as a valued partner. At the governmental level, discussions have taken place on a range of issues, signifying the ongoing and steadily successful dialogue process. In the area of water resources, two Secretary level meetings were held, one in New Delhi in January 2004 and the other in Dhaka in September 2004. These were followed up by technical level discussions under the aegis of the Joint Technical Group. Bangladesh and Indian experts have also jointly visited the Teesta Barrage sites in Bangladesh and India as also the Farakka barrage. Several issues have been resolved at their level. India is strongly committed to the dialogue process established through the Bangladesh-India Joint Rivers Commission (JRC) and hopes that the next JRC will meet soon after the forthcoming Secretary-level meeting.

In September 2004, the fourth round of Home Secretary-level talks was held in Dhaka, after a gap of more than two years. The talks were characterized by warmth and understanding, including on areas of serious concern. We welcome the implementation of some important decisions taken at this meeting, such as on double entry visas. We look forward to the early implementation of other decisions, such as on simultaneous coordinated patrolling, which will particularly help in improving the handling of incidents along our borders, including cross border movements, illegal migration, smuggling and kidnapping.

India will continue to take the lead within our region to strengthen cooperation on economic matters. Our approach in this regard is one of positive asymmetry to give much more than we seek to get from our neighbours. India and Bangladesh are not only close neighbours but are also natural trade partners. India has made considerable strides in recent years. Ours is now one of the leading economies in the world, the world's fourth largest in terms of Purchasing Power Parity. The size of the Indian economy enhances both our capacity to provide a ready market for Bangladeshi products, as well as our ability to supply Bangladesh with cost effective capital inputs for your rapidly growing economy, thereby making this a mutually beneficial relationship.

We are deeply aware of Bangladesh's concerns regarding the imbalance in our bilateral trade, regarding so called para-tariff and non-tariff barriers and regarding Bangladesh's keen interest in developing closer trade and economic relations with the States of Northeast India. As a neighbour and sincere well-wisher, India wishes to address all these issues in a spirit of cooperation and friendship devoid of suspicion, mistrust and mindset barriers that often assume more importance than the substance of the issues itself.

Therefore, we welcomed the setting up of the India-Bangladesh Joint Working Group on Trade, which has already met twice, first time in October 2003 in Dhaka and second time in March 2004 in New Delhi. These meetings made good progress in elucidating the issues of concern for each side and pointing the way towards solutions. Already, on two specific issues, earlier described as "para-tariff barriers" we have seen success and a positive outcome. The first concerns the export of cement from Bangladesh to India. These exports have now started, with the Bureau of Indian Standards (BIS) having already issued licenses to two Bangladesh companies for exporting cement to India. BIS has also proposed to its counterpart, the Bangladesh Standards & Testing Institution (BSTI) the draft of a bilateral agreement, which would enable BIS to utilize the services of BSTI for certification. The early conclusion of the bilateral agreement would eventually speed up the process of certification for cement and other Bangladeshi products entering the Indian market, including fruit juices and other agro-products. On yet another issue, export of lead acid batteries from Bangladesh to India, after completion of the due process of review, the Government of India has recently withdrawn the anti-dumping duties levied on this product. India remains willing to address these issues sincerely and we look forward to the next meeting of the India-Bangladesh Joint Working Group in Dhaka.

Investments and associated economic linkages between Bangladesh and India have in recent years emerged as important drivers in our bilateral relations. India is the 10th largest investor in Bangladesh with a total investment of US$ 330 million registered with the Board of Investment. There are 29 Indian joint ventures in Bangladesh and seven wholly-owned subsidiaries in such diverse areas as textiles, construction industry, chemicals, paints, pharmaceuticals, travel goods, information technology, coconut oil, ayurvedic products, white cement and automobiles. Indian companies are also involved in projects in key infrastructure areas in Bangladesh such as power generation and transmission, telecommunications, roads and railways.

India also remains deeply committed to the promotion of human resource development in Bangladesh. Each year, more than 200 Bangladeshi students receive scholarships or join training programmes in India which enable them to pursue professional studies in India's leading institutions such as Indian Institutes of Technology, medical colleges, NIIT, CMC and APTECH. Additionally, thousands of Bangladeshi students join courses of study in Indian schools and colleges every year. In the domain of Information Technology, India has offered to share our experience and has already implemented a 'Train the Trainers' programme, imparting specialized training to 250 Bangladeshi teachers in India, carried out by the prestigious Tata Infotech Company. Steps are presently being taken to gift 650 computers to various schools in Bangladesh.

Given our common civilizational heritage, cultural exchanges between Bangladesh and India are marked by enthusiasm and vibrancy. The preceding year witnessed the holding of a film festival, numerous art and photo exhibitions, workshops, seminars and visits by performing artists as well as eminent cultural personalities from different parts of India. These include performances by eminent Indian cultural troupes and artists such as "Ritusamharam" by Ratan Thiyam's Chorus Repertory Theatre, Ghazals by Penaz Masani, and folk dances from Rajasthan and Tripura. We recently inaugurated our Cultural Centre in Dhanmondi with a very successful and well-attended Exhibition of Rare Photographs of the Liberation War of Bangladesh in 1971. We hope to continue our efforts to further intensity our interaction in the cultural domain.

I would like to express my appreciation of the very significant contribution that the Indian community is making in this country, by dint of their hard work and entrepreneurship. I would like to particularly mention the large number of Indians working in Bangladesh's readymade garments industry in developing its infrastructure and service industries, particularly in areas such as financial and ICT services, railways, roads, telecommunications and power transmission.

There are immense prospects for regional cooperation in the energy sector as can be seen from the Joint Press Statement pertaining to the gas pipeline proposal that was issued in Yangon on 13th January 2005.ÊWe are indeed looking forward to the speedy implementation of the proposal for the common benefit of the three countries.

In conclusion, may I emphasize how much the government and people of India are looking forward to the successful outcome of the forthcoming 13th SAARC Summit in Dhaka. The Government of India remains deeply committed to the collective future of peace and prosperity for the entire South Asian region. Prime Minister, Dr. Manmohan Singh, has said "With our South Asian neighbours, it will be our sincere effort to jointly realize the vast potential for cooperation, and to ensure mutual security, stability and development". We will work hard with complete dedication to achieve this objective.

Mrs Veena Sikri is High Commissioner of India to Bangladesh.The above is her message on the occasion of the 56th Republic Day of India.