PM Hasina urges Indian businesses to invest in Bangladesh

PBC News:  Prime Minister Sheikh Hasina on Wednesday said Bangladesh-India cooperation should go beyond trade to derive larger gains.

“It should include investment, finance, services, technology transfer, and be placed within the context of regional cooperation,” she said.

The prime minister was addressing a business event, jointly organized by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the Confederation of Indian Industry (CII) at the ITC Maurya hotel here in New Delhi, reports UNB.

PM Hasina urged Indian investors to consider possible investments in infrastructure projects, manufacturing, energy and transport sectors in Bangladesh.

“Indian investors and business houses can set up industries in Bangladesh through Buy-Back arrangements by reducing time, cost and resources,” she said.

In the fiscal year of 2021-22, the total amount of FDI inflow to Bangladesh was $1370.357 million while the proportion from India was only $15.751 million attributing only 1.15%, she noted.

“So definitely, there is a real need for more collaboration between our two countries by way of involving business communities and trade bodies to find avenues towards deriving two-way trade and investment benefits,” the PM said.

In this regard, she mentioned that Bangladesh has the most liberal investment regime in the region with a wide array of facilities, attractive incentive policies, and consistent reforms.

Presently, 100 Special Economic Zones and 28 Hi-Tech parks are being established aiming to encourage investment and rapid economic development through increase and diversification of industry, employment, production and export, she said.

For the Indian investors, two dedicated Special Economic Zones at Mongla and Mirsharai are being developed, the prime minister said.

“I would urge the business houses present here today to invest there. It would further pave the way to harness the goodwill of the two friendly countries, and bring economic prosperity to the region,” she said.

She pointed out that Bangladesh is uniquely located to enable Indian investors to export their products to not only the northeastern states of India, but also to Nepal, Bhutan, and to Southeast Asian countries.

In the last ten years, the total bilateral trade between Bangladesh and India had an impressive growth with the balance heavily in favour of India, she said.

At present with its improved manufacturing capacity, Bangladesh is prepared to supply quality products at competitive prices to the Indian market, she added.

“We, therefore, invite Indian importers to look at Bangladeshi products which are being imported at higher prices from countries far away,” said the premier.

She said Bangladesh and India have the best relations while their relations are known as the Role Model of Neighborhood Diplomacy.

In this connection, she said the two countries, sharing 54 common rivers and having more than 4000 km border, do not have a dispute.

“Bangladesh is India’s most important development and trading partner,” she added.

In this context,  Hasina said, India receives the highest number of tourists and medical patients from Bangladesh, while thousands of Indian nationals are working in Bangladesh, contributing to both economies.

“Indeed, the time is ripe for the Indian business community to focus more on Bangladesh and take advantage of its economic growth, cheaper cost and huge consumer base.”

She expressed her confidence that the deep bonds of friendship existing between Bangladesh and India shall continue to grow and flourish.

“As it does, the business communities of both countries should draw close and play their due role in fostering mutual prosperity and economic advancement of our peoples,” Sheikh Hasina said.

Thereby, she said, the two countries would be able to bring prosperity and peace to the region.

The premier said that no doubt the Covid-19 pandemic has greatly affected global trade whereas the war in Ukraine has caused a significant rise in commodity and fuel prices worldwide.

“It has severely affected the established supply chain. This has led many countries, including those of South Asia, to suffer from acute economic crisis,” she said.

She said Bangladesh today is self-sufficient in food and is now one of the largest global producers of rice, vegetables, grains, and fresh-water fish – to name a few.

“Bangladesh, which had in the past suffered from natural calamities, is today a global example of disaster preparedness and management. It has also achieved huge socio-economic success, attained impressive growth and thus dubbed a ‘Development Miracle,'” said the PM.

She mentioned that Bangladesh’s economy grew over a decade crossing 7% in FY 2015-16, and 8% in FY 2018-19.

Since 2009,  the per capita income increased three times from around $1,000 to more than $2,800 today, she said.

“Moreover, remittance in the fiscal year 2021-2022 increased to $21,031.68 million. These indices reflect the strength of Bangladesh’s economy,” she added.