Indian businesses have proposed forming two joint taskforces with Bangladesh to promote investment in infrastructure and emerging technology sectors, including semiconductors, green hydrogen, battery storage and data centres.
The proposal came at a meeting between Commerce Minister Khondakar Abdul Muktadir and a high-level delegation from the Confederation of Indian Industry (CII) at the Secretariat on Tuesday.
The delegation, led by CII Director General Chandrajit Banerjee, expressed interest in investing in Bangladesh’s infrastructure projects either through private initiatives or public-private partnerships (PPPs).
One proposed taskforce would focus on private investment and PPPs in infrastructure, while the other would explore cooperation in emerging industries such as semiconductors, green hydrogen, battery storage and data centres.
“We want to reach a trillion-dollar economy in the future. For that, we need huge investments in large infrastructure projects such as new railways, highways, ports and LNG terminals,” Muktadir told reporters after the meeting.
Affordable investment from India in these areas would benefit Bangladesh’s economy, he said, adding that he considered the taskforce proposal a good one.
Easing trade barriers
The Indian delegation also called for improving the capacity and efficiency of land ports, particularly Benapole, to facilitate the movement of raw materials and goods between the two countries.
They said more efficient cargo handling and simpler border-crossing procedures could significantly reduce transportation costs.
The two sides also discussed recent trade restrictions and strains in bilateral commercial relations.
Muktadir said Bangladesh wanted to restore normal trade relations with India and expected positive progress on the issue in the coming months.
Removing trade barriers, easing visa procedures and engaging the private sector would be essential to building a long-term economic partnership, he said.
Bangladesh’s geographic position and India’s northeastern region also offer significant opportunities for expanding trade, connectivity and investment between the two countries, Muktadir said.
Business visas
Visa-related difficulties faced by businesspeople and professionals also came up for discussion.
Muktadir said it was impractical for people who regularly travel for medical treatment, business and other purposes to apply for new visas every few months.
He called for greater cooperation between the two countries to introduce longer-term visa arrangements for frequent travellers.
Interest in FMCG investment
According to the Commerce Ministry, CII members also expressed interest in investing in the fast-moving consumer goods (FMCG) sector.
They showed interest in setting up a modern integrated manufacturing facility near Dhaka to produce products such as soap and household goods.
The Indian businesses also called for an effective regulatory framework to ensure quality control of unregistered products.
They urged Bangladesh to adjust its tariff structure to encourage the use of energy-efficient industrial technologies.
CII representatives said their steam-related technologies could help textile, garment and food-processing industries reduce gas consumption by 10-35 percent. However, tariff disparities were discouraging the adoption of such technologies, they said.
The Indian business body also proposed internship opportunities for Bangladeshi youth at Indian companies and cooperation to resolve visa difficulties faced by Bangladeshi engineers seeking employment in third countries.