The Hindu Business Line : Dhaka told to improve connectivity to cut trade deficit

Improved connectivity and beefing up infrastructure for trade and allowing Indian investments would enormously help in boosting Bangladesh exports to India and bringing down trade imbalance that is heavily weighed against Dhaka.

Trade balance

This is the point the Minister of State for Commerce and Power, Mr Jairam Ramesh, conclusively made to the Foreign Secretary of Bangladesh, Mr Touhid Hossain, when he called on him recently. In 2006-07, India’s exports to Bangladesh amounted to $1626.58 million, while imports from that country amounted to $228.31 million, leaving a trade balance of $1398.27 million against Bangladesh. In the first three quarters of last fiscal, while India’s exports to Bangladesh amounted to $1658.71 million, imports from Bangladesh were $192.61 million, leaving a trade balance of $1466.10 million against that country.

Connectivity

Talking to Business Line here on the meeting he had with the Bangladesh Foreign Secretary, Mr Ramesh said that he has told Mr Hossain that when the theme of SAARC remains connectivity, India and Bangladesh were not able to come to any agreement on any major bilateral connectivity issue. He said that India has been requesting for Ashuganj as a transhipment point under Article 23 of the Protocol as well as a one-time exception for the power plant equipment to be taken to Tripura. Ashuganj is only about 62 km from Agartala and is an ideal spot for transhipment of goods to the North-Eastern States in India. Besides providing an impetus to trade and transit, it would be of great benefit to transporters of Bangladesh. He said that India is also open to the suggestion of declaring additional ports of call and stretches under the Protocol on Inland Water Trade and Transit Treaty that would only be beneficial to trade and commerce between both the countries.

Mr Ramesh said that a matter on which some positive movement is the mutually recognised need to have a coordinated approach to develop infrastructure for trade through the border. Both sides have already set up a sub-group, which is likely to meet soon to prepare a comprehensive report with suggestions for improvement in trade infrastructure.

Infrastructure

A coordinated development of infrastructure is contemplated as lack of adequate infrastructure at various land customs stations between the two countries and deplorable state of approach roads leading to them have been hampering smooth movement of goods, despite high volume of bilateral trade, he said.

On investments, he said, India has allowed investments from Bangladesh as increased investment would help increase Bangladeshi exports to India. He, however, cited the difficulties particularly regulatory delays three Indian companies face in Bangladesh in the area of pharmaceuticals and recycling plastic and metal scraps and said Dhaka should help overcome the problems.

Welcoming the idea of operationalising border haats, Mr Ramesh said that this would immensely benefit the people living near the borders and suggested a pilot project to begin with. The Government of India has forwarded a concept paper on opening border haat to the Government of Bangladesh.

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