Modi In Bangladesh: Look for opportunities beyond cotton, say industry bodies

The Dollar Business Bureau

The Prime Minister, Narendra Modi (Left) being welcomed by the Prime Minister of Bangladesh, Ms. Sheikh Hasina on his arrival, in Hazrat Shahjalal Airport, Dhaka on June 06, 2015. Source: PIB, Government of India

  As Prime Minister Narendra Modi has arrived in Dhaka, Industry bodies here pitch for strong economic ties beyond the thread of cotton and textile industry which should benefit both – India and Bangladesh.  The President of CII, Sumit Mazumdar believes that PM Modi’s visit would mark an exciting new phase in India-Bangladesh economic and commercial relations. Moreover, he stressed Bangladesh’s aim to become a middle-income country by 2021 and said, “India should emerge as a strong partner in realizing this goal.”  While ASSOCHAM believes that India should be more liberal towards its neighbour in granting market access as we enjoy a huge trade plus. “While a fair competition is welcome, India and Bangladesh can get together in gently tapping the global textiles market with advantage of the cost effective Bangladeshi workforce, while India can provide support in technology, branding, scale etc.” ASSOCHAM President Rana Kapoor said.  Total trade between India and Bangladesh stands at $6.9 billion in 2014-15. While India exports to Bangladesh worth $6.2 billion and imports at $0.6 billion, it has accorded Bangladesh, the status of zero-tariff imports for all but 25 tariff lines. India’s trade is governed by SAFTA framework. India-Bangladesh trade has increased over the years but the share of Bangladesh in India’s total imports remains miniscule. Share of Bangladesh in India’s exports has remained around 2% in recent years and India has consistently maintained a trade surplus with Bangladesh, added ASSOCHAM.  Furthermore, CII suggested that infrastructure and connectivity is the key to the bilateral investment. North Eastern states of India should be actively involved in planning transport linkages which will further deepen India’s Act East Policy.  Earlier today, Modi was received at the Hazrat Shahjalal International Airport by Prime Minister Sheikh Hasina and her Ministerial colleagues. "Thank you PM Sheikh Hasina for the warm welcome. I look forward to a very good visit that will strengthen ties between India and Bangladesh," the India PM tweeted.    

June 6, 2015 | 6:16 pm IST.