FICCI for exclusive economic zone in Bangladesh

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President of FBCCI Kazi Akram Uddin Ahmed speaking at the roundtable titled 'Investment Opportunities in Bangladesh' organised jointly by FBCCI and FICCI at a city hotel Tuesday. Among others, Secretary of Indian Commerce Ministry SR Rao, Indian High Comm

FE Report
Indian Commerce Secretary S R Rao Tuesday said India should not compete with Bangladesh in border trades, rather the competition should be in increasing mutual cooperation.
Mr Rao was speaking at a roundtable on investment opportunities in Bangladesh, jointly organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the Federation of Indian Chambers of Commerce and Industry (FICCI) at a city hotel.
The programme was organised in line with the three-day exhibition titled 'India Show', the first such event, which began in the capital on December 3 to enhance India's economic engagement with Bangladesh.
Mr Rao said Bangladesh has tremendous natural advantages in adding values to products after importing their raw materials from India.
"I think Indian entrepreneurs, looking for investment, should take the opportunities emerging in the neighbouring country."
He said the trade architecture of the world will change dramatically. India-Bangladesh-Pakistan-Nepal-Bhutan, the ASEAN and Latin America will command the global economy by 2020, and 50 per cent trade will be controlled by the Asian region.
Quoting WTO Director General Pascal Lamy, he said developing nations will no more remain as 'efficient traders', rather the developed nations will emerge as 'efficient traders'.
Speaking at the roundtable, FICCI President Rajya Vardhan Kanoria said Bangladesh should set up an exclusive economic zone for the entrepreneurs of the neighbouring country to promote inflow of Indian investment to Bangladesh.
Mr Kanoria said Indian businesses are keen to participate in Bangladesh's growth. But multiple visa facility and modes of transportation are required to promote the bilateral trade.
Besides, the issue of removing non-tariff barriers should be addressed mutually by both the governments. He stressed the need for improvement in the country's banking sector.
He also pointed out that there is shortage of skilled manpower in Bangladesh, and said India has planned to develop 100 million skilled manpower by 2020.
Speaking at the programme, the newly-elected FBCCI President Kazi Akram Uddin Ahmed said Bangladesh has a number of advantages that have made it a better investment destination in Asia.
"Bangladesh has a significant and inexpensive labour-force. Labour cost here is lower than that of any other Asian country. Our market is growing fast, as our population has reached 160 million."
He said Bangladesh also has a vibrant private sector, and foreign lenders are now showing keen interest in providing loan to the private sector.
Urging the Indian businesses to invest in Bangladesh, he said the immense untapped market of the north-east India states can also be an attractive destination for goods manufactured by the Indian investors in Bangladesh.
The FBCCI chief said investment in Bangladesh is well protected by law. To attract FDI (foreign direct investment) the country offers a liberal package of investment incentives and facilities.
Mr Akram highlighted a number of sectors, like - textile, electronics, information technology, frozen food, leather, ceramics, ship-building and light-engineering, which can ensure best return of investment.
During a business to business session both the Indian and local entrepreneurs showed keen interest for investing in the fields like raw cotton, jewellery, chemical, bio-fertiliser, automobile parts, herbal cosmetics, mobile phone manufacturing and port logistics.
The meeting was chaired by Abdul Matlub Ahmed, president of the India-Bangladesh Chamber of Commerce and Industry (IBCCI).
Paresh Agarwal, chief manager of Container Corporation of India Limited, said: "We want Bangladeshi investors to jointly develop port facilities here."
Abdul Hoque, a Bangladeshi automobile trader, said: "I want Indian investors to set up automobile parts manufacturing units in Bangladesh."
Bhartendu Dev, managing director and CEO of Uptodate Plastics and Packaging Ltd, said: "I want to sell hot-melt adhesive that is required in Bangladeshi furniture industry."
FBCCI director Anowar Hossain said: "I want to set up diamond and jewellery plant in collaboration with India."
Nilesh Pakesh, chairman of Gaja Jewellery House with a yearly turnover of Rs 60 billion, said: "We've already signed an agreement to start our business in Bangladesh with a local partner."
Board of Investment deputy director Arif Ahmed made a multimedia presentation on investment opportunities in Bangladesh.