Bangladesh urges India to help open business offices

Bangladesh yesterday asked India to facilitate opening of corporate offices of its businessmen in the next-door neighbouring country to enhance the flow of trade and investment between the two countries.
Ghulam Hussain, commerce secretary, who led a business delegation in New Delhi, said the Reserve Bank of India rejected applications of Bang-ladeshi companies to open offices in India.
"There is some problem regarding opening up offices by Bangladeshi companies in India. The RBI is not allowing Bangladeshi companies to have offices here," Hussain said at a function organised by the Confederation of Indian Industry (CII) here.
About 40 Indian companies, including Liberty Shoes, have their outlets or offices in Bangladesh, he added.
Tariq Ahmad Karim, Bangladesh high commissioner to India, said India does not encourage Bangladeshi businessmen to open their offices here for security reasons.
"I know one or two (Bangladeshi) companies which had applied (to set up their offices) and was rejected because of that (security reasons)," he said.
Karim said Indian government should facilitate these companies to set up their offices here as India holds huge business potential.
Trade between the two countries stood at $4 billion in 2010-11.
Talking about boosting trade within the South Asian Free Trade Area (Safta) region, Arvind Mehta, joint secretary of India's commerce ministry, said: "There are two major economies in Safta -- Pakistan and Bangladesh. I would urge both to reduce peak tariffs to encourage trade within the region."
Besides, he said, it would make the region more competitive than the rest of the world.
Replying to it, Hussain said: "Our rates are a bit high and this should be recognised. We take note of this. Tariff should be lowered for smooth flow of goods."
He, however said, for a country like Bangladesh tariff is an important instrument to earn revenue and use the funds for developmental work.
Safta was signed in January 2004 aimed at gradually eliminating tariffs on a maximum number of products. Its members are Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Afghanistan and Sri Lanka.