Use our neighbourhood policy for business, says Indian minister

India’s junior external affairs minister VK Singh has urged Bangladeshi businesses to explore his government’s neighbourhood policy for mutual benefit.

Singh, a former army chief, was inaugurating the India-Bangladesh business conclave in Dhaka on Sunday.

This is his first visit to Bangladesh after assuming office in May.

Singh is the last batch of Indian army officers who fought in the Liberation War of Bangladesh -- he was a young lieutenant in 1971 and fondly remembers scores of freedom fighters he fought with.

The minister said nothing would move forward “if we do not find mutual benefit”.

“We have a great opportunity that business community needs to explore,” he said, adding much of it was 'still untapped and should have been tapped'.

The India-Bangladesh Chamber of Commerce and Industry (IBCCI) and Indian Chamber of Commerce (ICC), Kolkata are co-hosting the conclave.

It aims enhance bilateral trade particularly with north-eastern states of India that share large international border with Bangladesh.

Singh, who is also the state minister independent charge of the ministry for the development of north-east region, led a strong Indian delegation to the conclave that include Meghalaya Chief Minister Mukul Sangma and Commerce and Industry Minister of Tripura Tapan Chakraborty.

Both of them also spoke about prospects of shared prosperity at the inauguration with Bangladesh’s Prime Minister’s Economic Affairs Adviser Masiur Rahman as its chief guest.

Indian High Commissioner in Dhaka Pankaj Saran and business leaders of both sides also addressed the session where all of them focused on economic activities for mutual benefit.

Singh said his government was committed to ensure Bangladesh's prosperity.

"Because in your prosperity lies the prosperity of India,” he said.

He said Prime Minister Narendra Modi also sent out this message across by inviting leaders of SAARC states in his swearing-in ceremony.

“So today we have a climate, we have the political will to ensure that things progress in a manner which will be for the benefit of people of all,” the former Indian Army chief said.

He said things would only move when both sides found benefit from it.

Bangladesh is currently India’s biggest trading partner among the SAARC countries.

According to the Board of Investment, the Indian investment was worth $2.8 billion now.

Since Nov 2011, Bangladesh has been enjoying duty- and quota-free access to the Indian market for all items except 25 tariff lines consisting of tobacco, spirits and alcohol.

But Bangladesh’s exports to India now valued at $563.9 million in the last fiscal were the highest ever against India’s export of over $4.5 billion.

Businessmen claimed there had been many bottlenecks for doing business with India, despite removal of tariff barriers.

Singh said Bangladesh’s business community had not been able to understand India’s markets.

“…That is why you have not been able to fully exploit this duty-free access.

“There is a need to understand the market and need for us to liberalise the linkages of business community in India,” said the Indian minister.

General Singh retired on May 31, 2012 and joined the ruling Bharatiya Janata Party (BJP) on Mar 1 this year before being elected from Ghaziabad constituency in the May general elections.

Though he came on a private visit to attend the conclave, his visit followed foreign minister Sushma Swaraj’s in June.

Singh earlier visited Bangladesh in 1971, 2009 and 2011 when he was “in uniform”.

He said India felt that with Bangladesh “we share special bond due to the type of interlinked economy we have”.

He said there were better opportunities to create “much better linkages” with the north-east states.

In this regard, he particularly mentioned power potentials as in Arunachal state about 16,000 MW power have not been exploited yet.

With this, he said, the needs of Bangladesh and all other neighbouring areas “can be taking care of”.

He also appreciated Prime Minister Sheikh Hasina’s regional approach as he met her on Saturday soon after his arrival.

“I can assure you as a country India is committed of regional linkages.”

He said his government had decided that north-east India must develop in terms of infrastructure which means rail, road and air connectivity and “connectivity with neighbouring countries”.

“It is not only the industry, it is also the people-to-people contacts,” he said.

He said there was “a great combine scope” of trade between India and Bangladesh.

“You have very strong garment industry and finished product. If the strength of two markets combines, nobody can beat us.”

“It needs business linkages of both countries and making use each other’s strengths so that we can benefit mutually out of it.”

He also said there would be joint investment scope “in any way you want”.

The conclave participated by businessmen of both sides discussed mostly issues on increasing connectivity, development of border trade infrastructure and removal of trade barriers.

Singh suggested the businessmen come up with “concrete proposals” so that those could be implemented.

Prime Minister's Economic Affairs Adviser Mashiur Rahman also urged businessmen to talk openly coming out of the diplomatic frame.

“Cooperation needs little more than conventional diplomatic relationship,” he said.

“We should be able to tell India ‘Idon’t like this approach’. (Likewise), India should be able to tell us ‘we don’t like this approach’.

“Without that we can’t reach that level of understanding, and mutual confidence, and the agreements signed would remain conventional document,” he said.

Meghalaya Chief Minister Sangma proposed joint investment with his state that offered “rich deposit of granite and very high quality of limestone”.

He also suggested organising a separate conclave focusing tourism since Shillong is best known for tourist spots.

Tripura minister Tapan Chakraborty put forward some proposals to the Bangladesh government to increase trade with his state.

Those include full operationalisation of Ashuganj port for multi-modal connectivity, start of Agartala-Kolkata bus service, allowing use of Chittagong port for Indian goods and strengthening ofinfrastructure at land customs stations on Bangladesh side.

High Commissioner Pankaj Saran has also urged Bangladesh’s businessmen to be “proactive”.

He suggested organising road shows, sending business delegation to India’s different states to understand the market and create linkages with the businessmen.

The Indian Chamber President Roopen Roy also acknowledged that both sides have “greater possibility” of growing each other.

“But we have to be innovative,” he said.