She was addressing a gathering during inauguration of the first border 'haat' (market) along Tripura-Bangladesh frontier at Srinagar in South Tripura district, about 140 km from here.
The Border haat was jointly inaugurated by Sitharaman and her Bangladesh counterpart Tofile Ahmed in presence of Tripura Chief Minister Manik Sarkar.
She said, India wanted to improve bilateral relations with all the South-Asian countries which have very long border with the north eastern region of the country.
"We do not want just a 'Look-East' policy. So we have converted it to 'Act East' because we want improvement of the relations," she said in her inaugural speech.
Bangladesh Commerce Minister Tofile Ahmed said his country shares the longest border with India, besides the same culture and want a really improved relation with it.
Ahmed said, Bangladesh wanted full implementation of the Indira-Mujib pact signed in 1974 and solution of all pending issues. However, he did not elaborate the issues.
Chief Minister Manik Sarkar said, issues like enclave, boundary problem and water sharing with Bangladesh should be resolved through negotiations and both the countries should emerge as true friends.
Tripura Industrial Development Corporation (TIDC) is the nodal agency of bilateral trade through border haat and the Additional District Magistrates of the districts concerned are the chairpersons of the border management committees.
Business in the 'haat' would take place once a week among the people living within 5 km radius of the border who would sell and buy locally produced goods.
No local taxes would be imposed on the items to be sold in the haats and currencies of both the countries would be accepted.
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