India - Bangladesh trade can double to USD 10 billion by 2018
Updated: Jun 24, 2014 05:02:56pm
New Delhi, Jun 24 (KNN) India-Bangladesh trade could double to USD 10 billion by 2018, provided trading irritants like non-tariff barriers and infrastructure related issues are resolved, said an industry body.
Commenting on visit of External Affairs Minister, Sushma Swaraj to Bangladesh, Director General, Confederation of Indian Industry, (CII) Chandrajit Banerjee feels that economic cooperation will get a boost and further intensify trade and Investment between the two countries.
“Two-way trade between India and Bangladesh stood at USD 6.6 billion in 2013-14 with India’s exports at USD 6.1 billion and imports from Bangladesh at USD 462 million. This represents more than double the value of USD 2.7 billion five years ago. However, the trade imbalance in favour of India and decline in Bangladesh exports to India are of concern. Skewed trade could be redressed with greater investment participation of Indian companies in Bangladesh,” it said.
Indian investments in the eastern neighbour stood at a cumulative USD 2.5 billion in 2013 and have been surging in the last three years.
“Bangladesh and India offer natural markets for each other’s exports and have advantages of reduced transaction costs and quicker delivery due to geographical proximity and common language,” added Banerjee.
The industry body has suggested addressing Non-tariff barriers (NTBs) such as harmonization and classification issues and non-recognition of Technical Standards to grow trade. Infrastructure bottlenecks related to power, ports, energy, and telecommunication also should be alleviated. Improving the investment climate by developing single window clearance for new business proposals; repatriation of profits, setting an Industrial Park for India in Bangladesh outside EPZ with all the needed infrastructure facilities; upgrading the tax holiday system and improved transport connectivity will further strengthen the economic partnership between the two countries, it added.
Some potential sectors for investment in Bangladesh are electrical machinery and equipment, vegetable/roots and tubers, agro processing, automobiles, textiles (including home textile), organic chemicals, and light engineering. In the services sector, ICT, pharmaceuticals, hospital and medical equipment, tourism, professional services, etc. offer good opportunities.
Major Indian exports to Bangladesh include Cotton, Sugar, Cereals, Vehicles and accessories, etc. and major Indian imports from Bangladesh include textile fibres, paper yarn, fish, apparel, mineral fuels, salt, cement, etc. (KNN/ST)
Commenting on visit of External Affairs Minister, Sushma Swaraj to Bangladesh, Director General, Confederation of Indian Industry, (CII) Chandrajit Banerjee feels that economic cooperation will get a boost and further intensify trade and Investment between the two countries.
“Two-way trade between India and Bangladesh stood at USD 6.6 billion in 2013-14 with India’s exports at USD 6.1 billion and imports from Bangladesh at USD 462 million. This represents more than double the value of USD 2.7 billion five years ago. However, the trade imbalance in favour of India and decline in Bangladesh exports to India are of concern. Skewed trade could be redressed with greater investment participation of Indian companies in Bangladesh,” it said.
Indian investments in the eastern neighbour stood at a cumulative USD 2.5 billion in 2013 and have been surging in the last three years.
“Bangladesh and India offer natural markets for each other’s exports and have advantages of reduced transaction costs and quicker delivery due to geographical proximity and common language,” added Banerjee.
The industry body has suggested addressing Non-tariff barriers (NTBs) such as harmonization and classification issues and non-recognition of Technical Standards to grow trade. Infrastructure bottlenecks related to power, ports, energy, and telecommunication also should be alleviated. Improving the investment climate by developing single window clearance for new business proposals; repatriation of profits, setting an Industrial Park for India in Bangladesh outside EPZ with all the needed infrastructure facilities; upgrading the tax holiday system and improved transport connectivity will further strengthen the economic partnership between the two countries, it added.
Some potential sectors for investment in Bangladesh are electrical machinery and equipment, vegetable/roots and tubers, agro processing, automobiles, textiles (including home textile), organic chemicals, and light engineering. In the services sector, ICT, pharmaceuticals, hospital and medical equipment, tourism, professional services, etc. offer good opportunities.
Major Indian exports to Bangladesh include Cotton, Sugar, Cereals, Vehicles and accessories, etc. and major Indian imports from Bangladesh include textile fibres, paper yarn, fish, apparel, mineral fuels, salt, cement, etc. (KNN/ST)
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