Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 840 Fri. October 06, 2006  
   
Business


Tata investment to help raise export to India to $1b a year
Indian envoy tells Bangladesh


Bangladesh's exports to India will increase to $1billion a year, if it approves Tata's investment proposals, said Veena Sikri, the outgoing Indian high commissioner in Dhaka, yesterday.

She also urged Bangladesh not to consider the trade-related issues politically, which were on many occasions raised in the two countries.

Sikri was talking to journalists after her farewell meeting with Commerce Minister Hafizuddin Ahmed at his Secretariat office.

The commerce minister said if the Indian government steps forward to recognise the product testing laboratories of Bangladesh, one obstacle to augmenting the country's exports to the neighbouring country would be removed.

The minister also stressed the need for modernising the Indian checkpoints in the land port areas so that the Bangladeshi exporters can export their products without hassles.

Sikri said, "Bangladesh's exports to India have gone up five times from $50 million to $250 million during the last three and a half years."

As a result, huge trade gap between the two countries is also reducing quite sharply and it will further come down with Bangladesh's approval of the Tata's investment proposals.

Bangladesh has a huge trade deficit with India. According to the Export Promotion Bureau (EPB), in 2005-06 fiscal year, the deficit reached $1117.64 million as Bangladesh imported goods worth $1359.60 million from India and exported goods of only $241.96 million.

On the trade barriers between the two countries, Sikri said Bangladesh and India have exchanged lists of non-tariff and para-tariff barriers in a bid to identify the trade problems.

"We are working on it. But trade issues should not be politicised. We want a positive outcome," she said.

Echoing Sikri's comments, the commerce minister said," Trade balance is very much in favour of India. So, it is very vital to reduce the trade barriers."

The minister also urged the Indian government to hold the next Joint River Council (JRC) meeting soon, which was scheduled to be held in New Delhi. But it could not organise it so far, he said.