Modi's Bangladesh visit to result in big gains: CII

It believes that the visit will mark an exciting new phase in India-Bangladesh economic and commercial relations

On the eve of Prime Minister Narendra Modi's visit to Bangladesh, CII today said it is bound to result in big gains for both countries that can have bilateral trade worth USD 10 billion by 2018.

Trade between India and Bangladesh was at USD 6.9 billion in 2014-15. However, it is heavily in India's favour with its exports to Bangladesh at USD 6.2 billion and imports at USD 0.6 billion.

"Prime Minister Modi's visit to Bangladesh is bound to result in big gains for both countries... CII believes that the visit would mark an exciting new phase in India-Bangladesh economic and commercial relations," said Sumit Mazumder, president of the Indian industry body.

"India-Bangladesh trade has potential to touch USD 10 billion by the year 2018. In order to reach this target, the two countries should aim at opening new land customs stations, harmonization and recognition of standards, pruning of negative lists, and banking and finance cooperation," he said.

However, CII said, trans-border trade, infrastructure bottlenecks, and non-tariff issues need to be addressed to achieve full potential of bilateral trade between the two countries.

"Indian industry can explore investment opportunities in Bangladesh across sectors such as energy, garments, and skill development," CII Director General Chandrajit Banerjee said.

India has accorded Bangladesh the status of zero-tariff imports for all but 25 tariff lines. Cumulative Indian investments in Bangladesh amounted to USD 2.5 billion in 2012-13.

"Bangladesh aims to become a middle-income country by 2021 and India should emerge as a strong partner in realising this goal," Mazumder stressed.

The industry body pointed out that infrastructure and connectivity is the key to the bilateral investment.

CII suggested that the North Eastern states of India should be actively involved in planning and preparing transport linkages, which would also deepen India's Act East Policy for greater engagement with ASEAN and East Asia.