Bangladesh hails India's proposal to invest in power sector

Dhaka, Aug.16 (ANI): Traders from Bangladesh have welcomed proposals from Indians to invest in the country's power sector.

In July this year, a 14-member business delegation of Confederation of Indian Industry (CII) visited Bangladesh, and called on Bangladesh Foreign Minister Dipu Moni.

They discussed ways to strengthen trade ties between New Delhi and Dhaka.

Chairman of the summit group of companies, Muhammad Aziz Khan, said investments from abroad are important, as Bangladesh has a per capita income of only 800 dollars.

"Investment in electricity and energy is vital for Bangladesh's development and Indian business houses are perhaps better positioned because of the natural proximity between India and Bangladesh as well as common law as the basis for both the countries, legal system. The bureaucracy is similar so they would naturally have an advantage or a better understanding of the market of Bangladesh. We welcome them but I think Bangladesh welcomes everybody's investments in energy sector," said Khan.

In Bangladesh, only 45 percent of the public has access to electricity.

Currently Bangladesh imports more than four billion dollars worth of products from India, while India imports less than one billion worth of products annually.

Khan said: "It is in the interest of both the countries that there is a better understanding of these common borders or common areas where both the countries may desire to say that, that belongs to that country, to have an understanding on those fronts would also improve relationship between the two countries and enable investments in this sector."

Traditional economic and cultural links between India and Bangladesh have been greatly enhanced with Prime Minister of Bangladesh, Sheikh Hasina visiting India in January, 2010 followed by a return visit by Prime Minister Manmohan Singh in September 2011.

Taking into account the trade imbalance between the two countries in favour of India, Singh during his visit to Bangladesh announced the removal of all 46-textile items from the sensitive list and zero duty access in all these 46 items for Bangladesh exports to India.

Tariff concessions granted by India to Bangladesh under SAFTA (South Asian Free Trade Area) (as SAARC LDC) include a zero-duty market access for all, but 480 items in the sensitive list.

India had further increased the duty-free access to 10 million pieces of readymade garments (RMG) from Bangladesh every year.

In addition to it, there is significant improvement in the trade relations between the two countries. In 2010-11, two-way trade crossed the five billion dollar mark as a result of a significant increase in Bangladesh's exports to India (68 percent over the previous year) and India's exports to Bangladesh (43 percent over the previous year).

India shares a 4096-kilometer-long border with Bangladesh, of which West Bengal has the most of 2216 kilometers.

India is Bangladesh's third largest trading partner, second largest source of imports, and ninth largest export market.(ANI)