High Commission of India

Dhaka

Remarks by High Commissioner of India, Mr. Harsh Vardhan Shringla at the IBFB & IICCI Joint Seminar on ‘Bangladesh-India Business Opportunities’

[Dhaka, 27 February 2018]

President of the International Business Forum of Bangladesh (IBFB), Mr. Hafizur Rahman Khan

Founding President of the International Business Forum of Bangladesh, Mr. Mahmudul Islam Chowdhury

President of the Indian Importers Chamber of Commerce & Industry (IICCI), Mr. A K Saxena

Mr. Md. Hafizur Rahman, Joint Secretary, WTO Cell, Ministry of Commerce, Government of Bangladesh

Mr. M. S. Siddiqui, Director, IBFB

Mr. T. K. Pandey, Director, IICCI

Friends from the media

Ladies and gentlemen

I am happy to be here at the seminar on ‘Bangladesh-India Business Opportunities’, being jointly organized by the International Business Forum of Bangladesh (IBFB) and the Indian Importers Chamber of Commerce & Industry (IICCI). The IBFB and IICCI had signed in 2017 an MoU on cooperation.

2. In the last 9 years, we have made substantial progress in advancing relations between India and Bangladesh. Our trade and commercial ties have also grown in tandem with the progress made in the overall bilateral relations. Our trade has nearly tripled from USD 2.75 billion from in 2008-09 to USD 7.52 billion in 2016-17 (Indian financial year). Bangladesh is now India’s biggest trade partner in South Asia and India the second biggest trade partner of Bangladesh. India granted duty-free quota-free access to Bangladesh as a SAARC LDC under SAFTA which has enabled greater exports from Bangladesh to India, particularly from the Readymade Garments (RMG) industry. Bangladesh’s RMG exports to India have more than doubled to USD 129.81 million in 2016-17 from USD 55 million in 2011-12. In the six month period of July-December 2017, Bangladesh’s RMG exports to India registered a 66.41% increase to reach USD 111.33 million.

3. We are also cooperating to accept certification from Bangladesh Standards and Testing Institution (BSTI) to facilitate easier access for Bangladesh goods to the Indian market. BSTI certificates for 21 food products are now being accepted in India. More products are under consideration of the two Governments. This will further promote growth of Bangladesh exports to India.

4. Indian investment proposals registered with the Bangladesh Investment Development Authority exceed USD 3 billion. In addition, USD 10 billion of Indian investments in power & energy, logistics, education and medical sectors are in the pipeline. The three proposed Indian economic zones in Mongla, Bheramara and Mirsarai will further facilitate Indian investments in Bangladesh.

5. India-Bangladesh cooperation in the power and energy sectors has grown by leaps and bounds in the last few years. 660 MW of power is being supplied from India to Bangladesh, which will be scaled up to more than 1200 MW by 2018. The joint venture of National Thermal Power Corporation, India and the Bangladesh Power Development Board is also implementing the 1320 MW Rampal Power Plant. Several proposals such as major private sector investments from India in power sector in Bangladesh, setting up of India-Bangladesh Friendship Pipeline for supply of gasoil from Siliguri to Parbatipur, integration of gas grids of the two countries etc. are at different stages.

6. Connectivity between the two countries has also improved significantly over the last few years. We have revived four of the six pre-1965 rail links between India and Bangladesh. Work on Shahbazpur-Kulaura, and Chilhati-Haldibari rail links is in progress. Government of India is also supporting the establishment of a rail link between Agartala and Akhaura. End-to-end customs and immigration services have been implemented for the fully AC Maitree Express between Kolkata-Dhaka, and a new passenger service – Bandhan Express – has been launched on the Kolkata-Khulna route.

7. Connectivity through Costal Waterways has been established after the signing of the Coastal Shipping Agreement in 2015. Trans-shipment of goods to Northeastern States of India through Ashuganj river port in Bangladesh has also commenced in June 2016 under the Protocol on Inland Water Trade and Transit (PIWTT). Both countries will also jointly undertake dredging of the Ashuganj-Zakiganj stretch of Kushiyara river and Sirajganj-Daikhowa stretch of Jamuna river to improve waterways connectivity. The cost of dredging these routes will be shared between India and Bangladesh in the ratio of 80:20.

8. We are also improving the trade and immigration infrastructure at our borders to facilitate easier flow of goods and people. India has upgraded the Land Customs Station (LCSs) at Petrapole-Benapole and Agartala-Akahura land borders to Integrated Check Posts (ICPs). Commencement of 24x7 operations at Petrapole-Benapole since August 2017 has eased the movement of cargo through this land border. Government of India also plans to improve infrastructure of 7 more Land Customs Stations including Dawki LCS where work has already commenced.

9. Communities dwelling in our bordering areas have benefitted from trade conducted in the Border Haats. Four Border Haats on the Meghalaya-Bangladesh and the Tripura-Bangladesh borders have been established, and several more are in pipeline.

10. Plans to open Indian Assistant High Commissions in Khulna and Sylhet are at an advanced stage.

11. Development cooperation is another important aspect of India-Bangladesh relations. Over the years, India's development cooperation with Bangladesh has grown in size and coverage. With the extension of a third Line of Credit of USD 5 billion dollars during the visit of the Hon’ble Prime Minister of Bangladesh to India in April 2017, Bangladesh became the largest development partner of India. Government of India is also implementing 63 socio-economic projects worth BDT 1400 crores in Bangladesh.

12. Both India and Bangladesh are amongst the fastest growing economies of the world. A PricewaterhouseCoopers report last year projected that India and Bangladesh have the potential to be amongst the three fastest growing economies between 2016 and 2050. We can be certain that rapid economic growth and improving ties between the two countries will also translate into better trade and commercial ties and greater opportunities for cross-border cooperation between business communities of the two countries.

Thank you.

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