Indian dy HC stresses export diversification, investment by Indian businesses in B'desh

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FE Report
Indian Deputy High Commissioner in Dhaka Sandeep Chakravorty Monday said diversification of the export basket and investment by Indian businesses here to produce goods and re-export those only can help Bangladesh boost its export volume to India.
"Despite facilitating duty-free access of almost all Bangladeshi products to India we did not see much progress of our neighbour," he told a press conference held at a city hotel.
The press conference was organised to brief the media about a three-day India Show to be held from December 3.
He said there are not many products in Bangladesh that can be exported to India. Only foreign investment can change the scenario.
"Almost all products produced in Bangladesh are available in different parts of India. So, Bangladesh needs diversification of its export basket and must produce certain products for exporting to India."
"Indian investment is suitable for Bangladesh…Indian entrepreneurs understand Bangladesh's business climate… Bangladesh's export to India won't rise unless the Indian investors come here," he said.
Sandeep said Indian northeast is a ready market for Bangladesh.
He also said Indian companies might look for collaboration in electricity generation, IT sector and tyre manufacturing.
He expressed hope that many business partnerships will emerge from the show.
Sandeep said there is no specific problem of Indian investors in Bangladesh. Some of problems are there such as land scarcity, power crisis which are also bottlenecks to investment in India.
The Federation of Indian Chambers of Commerce and Industry (FICCI) in collaboration with Commerce and Industry Ministry of India will host the biggest ever Indian show in Bangladesh.
Gaurav Swarup, Chairman of FICCI Eastern Council, said the aim of the India show is reflected best by its theme -- "Building partnership for progress".
There is a growing realisation in India that its neighbours must be its partners in achieving the goal of betterment of our people.
The show would expose India's capabilities and strength in various sectors to the Bangladeshi business community, to explore joint ventures and cooperation with Indian companies to boost trade and investment between the two countries.
He said there will be gems and jewelry show to find opportunities for individual or joint venture investment in Bangladesh.
Arvind Mehta, Joint Secretary, Ministry of Commerce and Industry, India said the whole region must be integrated for its betterment.
"When we facilitated duty-free access of almost all Bangladeshi products to India, everybody was surprised even Bangladeshi friends," he said adding that India did this to help Bangladesh grow.
Joint Secretary of Bangladesh Commerce Ministry Shawkat Ali Wareshi said the government officials will hold talks on the sidelines of the show to sign a number of cooperation agreements.
President of India-Bangladesh Chamber of Commerce and Industry (IBCCI) Abdul Matlub Ahmed said the bilateral trade between the countries is heavily tilted towards India.
The IBCCI is working to find a solution in this respect.
He said Air India will begin capital to capital flights from December 3, the starting day of the show.
He said several investment agreements on jwellery, textile and machinery are likely to be signed during the show.
"We are talking on the subject...nothing is final yet," he said.
FICCI officials said the event will bring together business leaders, artistes, journalists, academicians, best of Indian cuisine, cultural show and high-level ministerial sessions on trade issues and strategies to redefine the existing partnership.
There will also be seminars, discussions and one-to-one dialogue among the businesses during the India show.
They said India and Bangladesh's trade basket of goods and services has grown and diversified over the years. Not only have India's exports to Bangladesh grown from US$ 1.6 billion in 2005-06 to US$ 3.6 billion in 2010-11 but Bangladesh's exports to India have also grown from US$ 127 million to US$ 446 million during the same period.