Experts call for greater integration of Indo-Bangla economies

Indian investment in big projects in Bangladesh with buy-back arrangement, development of cargo handling at ports and greater integration of the two economies can generate jobs, said experts here yesterday.

The suggestions came at a seminar on “Bangladesh's Graduation from LDC: New Frontiers and Horizons for India-Bangladesh Economic Engagement.”

Bangladesh's High Commissioner Syed Muazzem Ali said several Indian companies such as Hero Honda, Tata group and CEAT Tyre have set up small projects in his country which, however, needs much bigger investments.

He said Bangladesh needs substantial investment to broaden its export base and the most practical course of action would be to set up a series of buy-back projects.

Through buy-back projects, Canada and Mexico emerged in a very short time as the largest trading partners of the US. “If they can do it, we can do it as well,” he added.

Ali said Bangladesh has offered three special economic zones to Indian entrepreneurs and hoped this would lead to expansion of Bangladesh's exports to India and thus create a balanced bilateral trade now heavily tilting towards India.

Ram Upendra Das, head of the Centre for Regional Trade Department at the Indian commerce ministry, said a worrying point in India-Bangladesh trade ties is the low level of capacity of ports in the two countries. Enhancing the capacity in the cross-border port connectivity can lift the bilateral trade greatly.

Bangladesh's annual import of fabric from India for its garments industry is now estimated at $7 billion, said Sheikh Fazle Fahim, senior vice president of the Federation of Bangladesh Chambers of Commerce and Industry.

He said a lot of intermediary inputs of Bangladesh's garments exports are supplied by India. So, trade and investment relations between the two countries should be looked at in an integrated manner.

Fahim said there is scope for Indian investment in composite garment projects in Bangladesh through joint ventures and in other areas of the manufacturing sector.

Md Abdul Kalam Azad, principal coordinator for SDG Affairs at the Bangladesh's Prime Minister's Office, and Qazi Kholiquzzaman Ahmad, chairman of the Palli Karma-Sahayak Foundation of Bangladesh, were also present.