: International News
Bangladeshi businessmen eye Indian investments
Dhaka, July 09, 2011
The new bilateral agreements between
India and Bangladesh will not only boost multilateral trade in
the region but also attract more Indian investments to the
country, said Bangladeshi experts and businesses.
They hope that more Indian investments will flow into the
country with the ratification of the agreement on protection
of investments, the Daily Star reported Friday.
The agreement on allowing Bhutanese vehicles to Bangladesh
through the Indian territory will promote multilateral trade
in the region, they said.
The agreements were signed by visiting Indian External Affairs
Minister S.M. Krishna and his Bangladeshi counterpart Dipu
Moni here Thursday.
Mustafizur Rahman, executive director of the Centre for Policy
Dialogue (CPD), said Bangladesh will now get an opportunity to
attract much-needed foreign investments.
Referring to the protection deal, he said Indian investments
will continue to grow in the country.
Indian investments in Bangladesh are now legally protected in
the events of war or other emergencies.
India has similar agreements with nearly 70 countries.
The deal will remain valid for 10 years and get an extension
automatically unless any of the two parties gives a written
notice to terminate it.
Ahsan Mansur, executive director of Policy Research Institute,
said he was surprised that the two neighbouring countries took
years to sign the deal.
"We need more foreign investments. India's investment here is
expected as Bangladesh is its next-door neighbour," said
Mansur, a former top official of the International Monetary
Rahman said Bangladeshi businesses are keen to invest in
India, particularly in the northeast region.
Amjad Khan Chowdhury, chief executive officer of Pran-RFL
company, said no one can say for sure that there won't be any
Bangladeshi investments in India in the future.
Chowdhury, who has a sales office in Kolkata, has been trying
to invest in India for the last six years.
Bangladesh's central bank does not allow capital export at
His sales office in India needs to be protected legally, said
Chowdhury, also president of the Metropolitan Chamber of
Commerce and Industry, Dhaka.
The two countries approved the standard operating procedure
for movement of Bhutanese vehicles between the land customs
stations of India and Bangladesh, the Star said.
With the signing of the deal, Bhutanese trucks will now be
allowed to use the Indian territory to travel to Bangladesh
for loading and unloading goods.
In October last year, Nepal was also given the same facility.
A study shows over 80 percent of Bangladesh's earnings from
transit and transhipment will come from India and the rest
from Nepal and Bhutan, provided Bangladesh gives the
facilities to the three neighbouring countries.