Proposal for trade normalization, visa simplification and joint initiatives in infrastructure and high-tech

On Tuesday (August 18), the Commerce Minister said these things in a meeting with a delegation of the Confederation of Indian Industry (CII) at the Secretariat. The meeting discussed Bangladesh-India trade and investment relations, existing obstacles, and prospects for future cooperation. The CII delegation was led by Director General Chandrajit Banerjee.

The Commerce Minister said that although the two countries differ in size, population and economy, the geographical location has created a major opportunity for mutual economic cooperation between Bangladesh and India. In particular, Bangladesh's geographical location and India's northeastern region offer vast potential for expanding trade, connectivity and investment.

He said that although South Asia's combined economy is large, the volume of intra-regional trade among the countries is relatively low. If regional economic connectivity is increased, new opportunities for industrialization, investment and employment could be created.

Regarding recent trade restrictions between Bangladesh and India, the Commerce Minister said dialogue and effective initiatives are needed to return bilateral trade to its normal course. He expressed hope of positive progress in this regard within the next few months.

The issue of visa complexities for businessmen and professionals also came up in the meeting. The Commerce Minister said it is not realistic for those who regularly travel between India and Bangladesh for medical treatment, business and other needs to apply for a visa every few months. In this regard, cooperation between the two countries is needed to introduce long-term visa facilities.

CII has proposed forming two joint task forces to increase cooperation in Bangladesh's infrastructure and high-tech sectors. One task force will work on increasing private investment and public-private partnership (PPP) in the infrastructure sector. The other will work to expand cooperation in futuristic industries such as semiconductors, green hydrogen, battery storage and data centers.

CII representatives said that last year, about 25 lakh crore rupees was invested in the infrastructure sector in India. A significant portion of this came from the private sector. They opined that using India's experience, there is an opportunity to attract domestic and foreign institutional investment in Bangladesh as well.

The meeting also discussed utilizing Bangladesh's local production capacity. Indian businessmen said that many local enterprises are weakening for various reasons despite having the necessary capacity. If these industries are strengthened, domestic production will increase, import dependence will decrease, and the time taken to implement various projects can also be reduced.

Citing the example of the joint venture with Energypac, a CII representative said that despite having domestic production opportunities, many products have to be imported. Importing goods through land ports can take up to 40-45 days. If the capacity of local industries is restored, such supply chain problems can be largely reduced.

CII has also expressed interest in investing in Bangladesh's rapidly growing FMCG sector. It has proposed setting up a modern integrated factory around Dhaka to produce various products including soap, home care insecticide and fragrance. They also highlighted the need to build an effective regulatory framework to control the quality of unregistered products.

CII has called for reconsidering the tariff structure to increase the use of energy-efficient technology in the industrial sector. Representatives said that if their steam-related technology is used, gas savings of 10 to 35 percent are possible in the textile, readymade garments and food industries. However, the existing tariff disparity is creating barriers to the use of these technologies.

In addition, CII proposed cooperation to provide internship opportunities for Bangladeshi youths in Indian companies and to reduce visa complexities for Bangladeshi engineers seeking employment in third countries.

In the meeting, both sides emphasized not only formal discussions, but also making the Bangladesh-India economic relationship more effective and fruitful through specific projects, business-to-business contacts and an effective institutional framework.