Jahangir Bin Alam
In this era of globalisation and liberalisation no country can prosper remaining in isolation. Mutual cooperation between countries, especially with their respective neighbours, is critical for economic development. Hence inter and intra-regional cooperation is the current buzzword. Bangladesh and India being close and friendly neighbours need to strengthen their economic ties further for mutual benefits of their two peoples.
Bangladesh and India have been maintaining a very friendly and cordial socio-economic relationship between them since the emergence of the former as an independent and sovereign country in which the latter played a significant role.
Strengthening Bangladesh's economic ties with India in general and its northeastern states in particular is vital for development of sustainable growth of this region.
Over 15 per cent Bangladesh's total imports come from India. The balance of trade between Bangladesh and India is heavily tilted in favour of the latter and this is offset by the former's surpluses with other countries. India's imports from Bangladesh account for less than one per cent of its total imports. Interestingly, unofficial trade between the two countries amounts to 3-4 per cent of official trade.
According to the Federation of Indian Chambers of Commerce & Industry (FICCI), India's exports to Bangladesh increased from US$1.0 billion in 2001-02 to US$ 3.17 billion in 2007-08 and according to rough estimates of the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) another US$ 3.0 billion worth of goods are being brought into Bangladesh informally, thus totalling a figure of over US$ 6.0 billion in imports from India to Bangladesh. On the other hand, Bangladesh's export to India has reached roughly half a billion until to date.
According to Centre for Policy Dialogue (CPD) statistics, in the first six months of FY2011 (July - December 2010) Bangladesh's imports from India stood at US$ 2062.1 million, while its exports to India during the same period stood at US$ 185.6 million.
Bangladesh has a quite a large market in India, especially in its north eastern region for many of its products such as - bricks, cement, processed food and food products, agro-based products, fish and fish products, melamine products, ceramic products, toiletries and cosmetics, CI sheet, light engineering items etc. because of its geographical proximity and lower transportation cost. Although Bangladesh's exports to India's north-east region have grown substantially than it used to be few years back, there still remains ample scope for growth provided the exporters and importers get necessary fiscal and infrastructural support from both sides divide.
Tripura, Meghalaya, Assam and their adjoining states in the north-east India have significant natural resources that could find markets in Bangladesh. Items like timber, fruits, bamboo, bamboo chips, spices etc. are to name a few. Besides, the region could profitably export its excess power to power hungry Bangladesh.
There are immense possibilities of investment and expansion of trade for Bangladeshi entrepreneurs in the trillion dollar economy of India which has recently removed the barriers that so far existed for Bangladeshi investments there. Time has come for the dynamic Bangladeshi entrepreneurs to spread their tentacles and invest in the industrial and financial sectors of India, especially in its northeastern region.
Many Bangladeshi entrepreneurs are now willing to invest in India, particularly in its north-east states to avail the attractive incentive packages offered by the respective states of the region. It may be noted here that renowned Bangladeshi entrepreneurs - PRAN RFL -- have already come forward and started implementing their investment plans in Tripura keeping an eye on the markets in its neighbouring states. Few others are contemplating to follow suit.
India-Bangladesh Chamber of Commerce and Industry (IBCCI) is closely working with national trade bodies of India like the Federation of Indian Chambers of Commerce & Industry (FICCI), Confederation of Indian Industry (CII), Indian Chamber of Commerce (ICC) towards further development of trade and investment between the two countries, especially in the backdrop of Bangladesh's agreement to allow transit and trans-shipment of Indian goods through its territory. To this end, at the initiative of IBCCI, there has been several exchange of visits of business leaders from both the sides during the last couple of years.
It is encouraging that the joint efforts of IBCCI, other trade bodies and the business communities of India have started bearing fruits in recent times and have paved the way for increased exports of both traditional and non-traditional Bangladeshi items to the north-east and also mainland India. A good quantity of items like bricks, cement, stone chips, sheet glass, plastic products, dried fish, leather products, frozen and processed food, jute goods, agro products, light engineering products, ceramic products, furniture etc. are regularly being exported to the northeast and mainland India.
In recent times, there have been some forward looking steps taken by both the governments regarding connectivity encompassing transit and trans-shipment facilities to India, particularly as an aftermath of Bangladesh Prime Minister's historic India visit in early 2010.
This scribe feels that the relations between the two countries are headed for better times, and both have entered into a dynamic phase of mutual cooperation, which has been triggered off by the able and dynamic leaderships of the Prime Ministers of the two countries.
More and more interactions between the governments and the business communities of the two countries would be beneficial for both and will help usher in a new era of mutual cooperation and understanding between the two. To this end removal of pin pricks on both the sides is extremely important.
Visa problem can be cited as a major issue hindering frequent interactions between the business people from both sides. In this context IBCCI has recently called upon the governments Bangladesh and India to ease their respective visa regimes to ensure issuance of at least six month's multiple visas to the genuine businessmen of both the countries.
The writer is Secretary, India-Bangladesh Chamber of Commerce & Industry (IBCCI). He can be reached at E-mail: jbalam44@yahoo.com