The Centre for Policy Dialogue (CPD) has emphasised on adequate infrastructure development in Bangladesh take advantage of market access to India and particularly Indian investment in Bangladesh. It also suggested ensuring adequate supply of gas and electricity and lands in cheaper rate to encourage Indian investors in the country.
Addressing a dialogue on Tuesday, the CPD fellow Dr Debapriya Bhattacharya said lack of proper leadership in the country is responsible for failing to utilise the Indian market access. “Although Bangladesh gets duty-free access to the Indian market for products, we can’t increase the export. There is lack of coordination in the government. The government faces leadership crisis in this sector. For this reason, we are failing to hold the Indian market properly,” he said.
The CPD arranged the dialogue on “Utilising Indian Market Access Offer through Promotion of Trade Facilitation” in a city hotel. CPD Chairman Prof Dr Rehman Soobhan moderated the function while State Minister for Foreign Affairs Md Shahriar Alam addressed it as the chief guest. Former FBCCI President Abdul Awal Mintoo and President of India-Bangladesh Chamber of Commerce and Industry (IBCCI) Abdul Matloob Ahmed also took part in the discussion, among others.
CPD Executive Director Prof Dr Mustafizur Rahman and senior research associate of the CPD Khaleda Akhter presented the keynote paper.
Dr Debapriya said that the share of Bangladesh’s export in Indian market is not more than two percent, while Bangladesh’s import from India is more than 13 per cent. There are numbers of items, which are exported to the global market, but not to India, while India imports those items from the global market, but not from Bangladesh. The government should think directly to export those items to India. Investment has to be increased alongside with increasing the standard of the items, he suggested. In this regard, Dr Mustafizur Rahman said, Bangladesh may take the opportunity of enhancing its export to the neighbour country through developing the infrastructures, including the development of ports and roads.
Indian ports and other related infrastructures should also be developed while supply-side capacities in Bangladesh has to be further strengthened, he said.
He also suggested for ensuring adequate supply of gas and electricity in Bangladesh, indicating potential opportunities for increased export.
Abdul Matloob Ahmed also highlighted the same views of Dr Mustafizur Rahman, saying that Indian investors would come in the country, particularly in the RMG sector, if Bangladesh can ensure adequate supply of gas and electricity and the lands in cheaper rate. Then production of fabric and yearn would automatically increase while Bangladesh’s export-oriented industries such as readymade garments could more flourish, he said.
Indian investment in Bangladesh, targeting the Indian market, could be another way to enhance export and reduce bilateral trade deficit with India, he observed adding that investment flow from India to Bangladesh has been rather low till now.
