Ramesh pushes Indian investment

The only way to cut the huge trade gap is to increase India's investment in Bangladesh, India's State Minister for Commerce and Power Jairam Ramesh said yesterday.
India's exports to Bangladesh reached $3.3 billion in fiscal 2007-08, while Bangladesh recorded only $350 million in exports, said the visiting Indian minister.
“Indian companies, mainly in pharmaceuticals, steel and IT, want to invest in Bangladesh. These companies will export their products to India,” Ramesh told reporters in an interaction with the media at Radisson Water Garden Hotel in Dhaka.
Quoting a study, he said connectivity (not transit) between the two countries can also help Bangladesh earn revenue worth $1.2 billion a year.
The Indian minister believes all the measures, if taken, would reduce the huge trade gap between the two neighbours.
Indian High Commissioner to Bangladesh Pinak Ranjan Chakravarty was present at the briefing.
Ramesh came to Dhaka to attend the celebration of Dhaka Chamber of Commerce and Industry's golden jubilee.
“I had discussed with the Bangladesh commerce adviser today (Saturday) that some leading Indian IT firms want to come here with their investment proposals in next couple of months," Ramesh said.
Some companies have already set up their liaison offices here, he added.
The Indian minister who visited Bangladesh three times in the last 20 months said the mega investment proposal of Indian biggest conglomerate Tata would be revived in future.
“I don't think Bangladesh has divorced Tata permanently. It is a temporary one,” he said.
Ramesh also focused on Bangladesh's need for power, Safta negative list, non-tariff barriers and duty-free export of eight million pieces of garment from Bangladesh.
The minister said Bangladesh has a substantial shortage of power while India has taken a plan to generate 20,000 megawatts of power in its northeastern region surrounding Bangladesh, by 2020.
“Currently, a 750MW power plant is being implemented in Tripura. I have offered Bangladesh collaboration in investment or purchase from the project,” he said. “I have also requested the government to study the proposal.”
India is generating power in neighbouring Nepal, Bhutan and Sri Lanka for use in India.
Responding to a tripartite deal on hydraulic power business involving Nepal, the minister said, “It is a bilateral connection.”
India has cut its Safta negative list to 480 items from the previous 744. “Again India has agreed to reduce the list by 50 items on a request from Bangladesh's 101,” Ramesh said.
The minister said India had allowed in some 5,000 products from five least developed countries in South Asia -- Bangladesh, Bhutan, the Maldives, Nepal and Afghanistan -- at the zero duty rate under the Safta treaty.
The minister said he wants to see Bangladesh companies take advantage of the chance to invest in India that withdrew the restriction late last year.