Hasina pitches for investment, India Inc says ’sure’

NEW DELHI - India Inc Tuesday committed itself to promoting economic ties with Bangladesh with the Bharti group proposing $1 billion to build its telecom network and Meru Cabs along with Tatas planning a transport service with 20,000 radio cabs.

The business-to-business partnership came against the backdrop of the Indian government Monday announcing a $1-billion credit to Bangladesh, the highest to any country by it, aimed at developing infrastructure such as railway bridges and supplying locomotives .

The commitments were made during an interaction among the businesses of the two sides coinciding with the official visit of Bangladesh Prime Minister Sheikh Hasina who has invited Indian companies to invest in her country’s future.

“Under the national campaign of ‘Digital Bangladesh’ Bharti Enterprises and Warid Telecom also inked their resolve for collaboration in the telecommunications segment,” said a statement issued by the Confederation of Indian Industry.

The two companies had recently entered into a $300-million deal for telecom services in Bangladesh and the chamber said indications were made that the level of investment could be stepped up to $1 billion in coming years.

“Meru Cabs and the Tata group also presented their intent to invest in Bangladesh with 10,000-20,000 radio controlled taxis, which would address transportation problems in Bangladesh,” the statement said.

This apart, the chamber entered into an agreement with the Federation of Bangladesh Chambers of Commerce and Industry to enhance their work in promoting trade and investments.

“In a warm and frank dialogue, the delegation members from Bangladesh raised some of their concerns in increasing economic engagement with India. Visa- and tariff-related issues figured among the biggest impediments,” the chamber statement said.

The Bangladeshi side also sought reduction of trade balance that is skewed in India’s favour, increased quota of duty free access for its textile and garments, removal of non-tariff barriers and an upgrade of warehousing facilities in border areas.

Earlier, Hasina said she will ensure greater economic linkages between her country and India.

“We need to have a fair trade balance between the two countries. We want Bangladesh to become a poverty-free country,” the Bangladesh premier said at an event organised by three leading industry bodies.

“This will increase the purchasing power of our people,” she said at the event hosted jointly by the Confederation of Indian Industry, the Federation of Indian Chambers of Commerce and Industry and the Associated Chambers of Commerce and Industry.

She also said her country’s economy relies heavily on exports of garments, and sought duty-free access to such exports to India as this sector has been hit by the global slowdown and increased competition.