Speaking at an interactive session with representatives of apex Indian chambers of commerce and industry yesterday afternoon, Bangladesh Finance Minister M Saifur Rahman also sought from India more investment in Bangladesh. He suggested the $2.5 billion investment proposal by the Tata Group in Bangladesh could transform the relations between the two neighbouring countries.

Seeking greater access for Bangladeshi goods to Indian markets, Saifur told the Indian business leaders, "Even if you lost $100 million [by importing from Bangladesh], it is nothing compared to your two-billion-dollar worth of exports to Bangladesh."

"If you do this, we will take two steps forward," Rahman said.

Seeking access to the Indian corridor for Bangladeshi exports to Nepal and Bhutan, Saifur urged India to upgrade a 17km stretch of road in India as it is unsuitable for movement of trucks carrying goods.

He said Indian President APJ Abdul Kalam during his meeting with Prime Minister Khaleda Zia yesterday afternoon raised the issue of Bangladesh government's clearance to the Tata investment proposals to set up power, steel and fertiliser plants in Bangladesh.

"We are giving serious examination to the proposals which have so many imponderables like Tata's access to coal mines, use of ground water which is scarce, price of land in a land-hungry country and the price of gas which the Indian company would use for their plants," he said.

"We have to sign 23 agreements--not one or two--relating to royalty, fees and other aspects of the investment proposals by the Tata," he added.

Saifur said the power and steel plants were the core of Tata's investment but the fertiliser unit is no big deal as Bangladesh has enough fertiliser factories.

"We are giving a serious study to Tata's proposal not only from narrow business angle but also from the point of India-Bangladesh relations," he said, adding, "If the proposal is pushed through, it will create an environment for giving a different direction to relations between the two countries."

He said while fixing the price at which gas will be supplied to Tata, the Bangladesh government has also to keep in mind the domestic investors who should not feel let down.

He suggested economic integration in South Asia like the European Economic Community and said countries in this region should not allow "small problems" to affect their economic ties.

"If European countries could come together for economic integration after fighting among them for centuries, why can't we? After all, we have not fought for centuries. Bangladesh, India and Pakistan know each other so well and yet we are hit by small problems," Saifur said.

He said he has no objection to FTA with India. "Maybe we cannot go the whole hog but some steps in this direction will be a great boost--a sort of micro FTA between India and Bangladesh."

Stressing the need for harmonisation of customs rules and testing of products between the two countries, he said India must upgrade its infrastructure on its side at border trade points to boost bilateral commerce.

Saifur rejected India's offer of technical support to Bangladesh to set up testing laboratories, saying, "We have enough resources for doing that."

Pointing out that he is a great believer in liberalising trade between India and Bangladesh, Saifur said, "I have not imposed any countervailing duty on any goods from India. In fact, I have resisted compulsions to impose countervailing duties on Indian cars."

Bangladesh Foreign Minister M Morshed Khan was also present at the meeting but did not speak.

Earlier, President of Federation of Indian Chambers of Commerce and Industry (FICCI) Yogendra K Modi in his welcome speech said India recognised the need for reducing the adverse trade balance against Bangladesh. "One plausible solution [to this] seems to be the increased Indian investment into Bangladesh with possibilities of re-export to the Indian market," he said.

Pointing out that Indian investment in Bangladesh was a miniscule $12.5 million, Modi put forward an 11-point plan to boost bilateral trade and Indian investment in Bangladesh.

Later, the Federation of Bangladesh Chambers of Commerce and Industry and FICCI signed a Memorandum of Understanding (MoU) to promote Bangladesh's trade and investment opportunities and encourage Indian companies to choose Bangladesh as their preferred investment destination.

The two chamber bodies decided to set up a joint task force to work out time-bound and target-bound activities to spread awareness of bilateral trade opportunities in the wake of implementation of Safta, identifying tariff and non-tariff barriers, anti-dumping and countervailing duties and effecting policy changes to remove them.

The task force may also consider setting up of special economic zones for Indian investors in Bangladesh.

It will also formulate recommendations for creating and upgrading infrastructure at all land border points between India and Bangladesh, containerisation of traffic up to Dhaka and vice versa.

The MoU was signed in the presence of Saifur Rahman and Morshed Khan.