Attracting Indian investment to Bangladesh is the only way Dhaka can cut the huge trade gap with Delhi, India's State Minister for Commerce Jairam Ramesh said yesterday.
He said, "It is not possible for Bangladesh to cut trade deficit with India by exporting goods. Most important and the only way to reduce trade deficit is to attract Indian investment to Bangladesh".
Indian state minister was speaking at a meeting organised by Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) in Dhaka.
"Convince your government to give right signal to Indian investment to Bangladesh," he told the businesspeople of Bangladesh.
He said Bangladesh should ensure gas supply and port facility to attract FDI.
Commerce Minister Altaf Hossain Choudhury, Commerce Ministry Adviser Barkat Ullah Bulu, Indian High Commissioner in Dhaka Veena Sikri and FBCCI President Mir Nasir Hossain were present at the meeting.
Ramesh said, "I do agree that there is a huge trade deficit between India and Bangladesh but this is not done deliberately by India."
According to Export Promotion Bureau (EPB) statistics, Bangladesh exported goods worth $144.20 million to India while India exported goods worth $2007.10 million to Bangladesh in 2004-05 fiscal year. The trade deficit between Bangladesh and India was $1862.90 million in 2004-05. The deficit reached $714.09 million in the first six months of the current fiscal year.
The Indian state minister however advised Bangladeshi businesses to diversify export products to meet Indian demands.
About non-tariff barriers, he said, "We are proactive, we have no desire to impose non-tariff barriers on Bangladeshi exportable products to India".
"We will meet in Kolkata next June to solve the non-tariff barrier issues," he said.
