India, Bangladesh intensify talks on trade ties

DHAKA: Union Commerce and Industry Minister Anand Sharma has stressed the need to further strengthen economic ties between India and Bangladesh. The two sides have agreed to intensify discussions at official and technical levels to provide further impetus to trade and economic exchanges, the Hindu reported on Sunday.

Speaking during his ongoing visit to Bangladesh, Sharma said that private sector investment from India to Bangladesh to the tune of $3.5bn was in the pipeline and an increased Indian investment in Bangladesh would provide employment and value addition for Bangladesh exports to the rest of the world.

Both sides noted that trade had increased significantly between the two sides with exports from Bangladesh having increased six times in the last few years. In the first three quarters of the current year, it has reached the level of $359m, which is higher than the exports of $304m last year.

India and Bangladesh have agreed to take further steps to promote trade and economic cooperation. India has offered a tariff-free quota of 10 million pieces of apparel exports from Bangladesh, marking an increase of 25 per cent over previous years.

Countervailing Duty was lifted on all jute exports from Bangladesh, and for strengthening of infrastructure at borders, including construction of Land Custom Stations and Integrated Check Posts, particularly at Petrapole and Agartala such that trade is facilitated. A Working Group on Infrastructure will coordinate implementation.

The schedule has been stepped up for completion of border haats in Meghalaya for a formal launch in June 2011 and India has welcomed the submission of DPRs by the Bangladesh side for infrastructure projects under $1bn. These projects are expected to be implemented shortly.

India has also offered assistance in the construction of the bridge over river Feni, including the construction of the connecting road on the Bangladesh side. India renewed its offer to export 300,000 tonnes of par-boiled rice to Bangladesh and finalise options for lifting of the grain at the earliest.

India welcomed the offer of use of Chittagong and Mongola ports and noted that this will provide tremendous benefit for trade and development of Bangladesh and the North-East of India. India is awaiting Bangladesh’s response to the draft modalities that have been proposed.