'More exports please'

Indian companies setting up production units in Bangladesh must export their products and not merely sell them in Bangladesh's domestic markets, says Abdul Matlub Ahmad, chairman of India-Bangladesh Chamber of Commerce and Industry.

Ahmad, who is chairman of the Nitol-Niloy group, told bdnews24.com on the sidelines of the recently-held "Tripura Conclave", that Indian companies were most welcome to set up production units in Bangladesh.

"But they must re-export to India and third countries and not just their stuff in Bangladesh," Ahmad said.

"Only if they export extensively will they benefit our economy and that will also help their own balance sheets," he told bdnews24.com.

Ahmad said the least these companies can do is to send their products to Indian states around Bangladesh, because that can be done with minimum transport costs that will keep their products competitive.

"Let us say a Mumbai-based Indian company sets up a production unit in Bangladesh. It can gainfully sell its products in eastern and northeastern states of India and be very competitive. That is what we expect them to do," Ahmad said.

He said his Nitol-Niloy group which plans to produce Tata's small car Nano in Bangladesh will seek not only domestic buyers but also target Southeast Asian markets.

"Only if we do that will our investments generate the right kind of returns," said Ahmad.

The top industrialist leader who has played a major role in promoting India-Bangladesh business ties said it was also time Bangladesh companies exporting to India were allowed to invest a part of their profits in setting up production units in India's Northeast.

"That is one area which has proximity to Bangladesh and it has many resources we are looking for. Now our exports to India will surge as New Delhi has enforced duty free access for our products. Let us invest 10 percent of our profits to set up production units in Northeast India," Ahmad said.

He said laws will have to be changed for that to happen -- but it was time they must.

"What is the use of piling up forex reserves and feel good about a lot of dollars in our vaults if they cannot be used for gainful investments. Northeast India is close to our territory and there are people in India who want to open that region out for Bangladesh capital. Our central bank and finance ministry should help us seize that chance," Ahmad told bdnews24.com.

Leaders in northeast Indian states, specially in Tripura, have welcomed Bangladesh capital to invest in the resource-rich but investment-starved region, specially in the context of the unfolding trans-national processes like BCIM.

Tripura chief minister Manik Sarkar recently welcomed Bangladesh investments on the eve of the 'Tripura Conclave', a private citizen initiative taken by www.tripurainfoway.com to develop cross-border trade and investments.

Speaking at the Conclave, Tripura chief secretary Sanjay Kumar Panda reiterated Sarkar's open-door to Bangladesh investments.

Abdul Matlub Ahmad joined former Bangladesh foreign minister Dipu Moni in presenting the Bangladesh's perspective at the Tripura Conclave.

Their presentations were greeted by a packed audience at Agartala's Sukanto Academy on July 9.