Bangladesh-India trade: Two task forces proposed to boost business ties

The Confederation of Indian Industry (CII) on Tuesday proposed forming two joint business task forces on digital transformation and infrastructure investment and financing to further advance Bangladesh-India trade and investment ties.

At the same time, Indian businesspeople and investors have stressed the need to make cargo handling at land ports, including Benapole, faster and more efficient, Commerce Minister Khandkar Abdul Muktadir told reporters after a meeting with a CII delegation at the Ministry of Commerce.

Leaders of India’s leading business organisations, along with representatives of several renowned companies, were part of the delegation. Some of these companies already have investments in Bangladesh.

The Commerce Minister said Indian companies operating in Bangladesh had reported some problems in transporting raw materials and goods through land ports. In particular, improving the efficiency of cargo handling at Benapole and facilitating the movement of goods across the border would reduce their transportation and raw material costs. This, in turn, would increase trade between the two countries.

Indian businesspeople have proposed forming two business-to-business task forces comprising businesspeople from the two countries. One would work on India’s experience and cooperation in digital transformation, while the other would explore ways to increase Indian investment and financing in Bangladesh’s infrastructure sector.

The proposal is also expected to be discussed with the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).

Welcoming the initiative, the Commerce Minister said large-scale infrastructure investment would be needed to take Bangladesh towards a trillion-dollar economy in the future. Huge financing would be required for various sectors, including new railways, highways, ports and LNG infrastructure.

He said Indian investors’ interest in these sectors would be viewed positively if such cooperation proved beneficial for Bangladesh.

He said political and commercial relations could not be viewed completely separately. However, both countries would benefit as much as business, investment and commercial ties between the two countries increased in the interest of their development.

Citing the example of the European Union and various regional trade blocs, he said regional cooperation was important for economic progress.

Commerce Minister says not satisfied with commodity prices

Asked about the market situation six months after taking office, the Commerce Minister said he was not satisfied with the current cost of living and commodity prices. However, reducing prices was not merely a matter of market monitoring. It was linked to factors such as fuel and electricity prices, lending rates, productivity, transportation and infrastructure.

He said Bangladesh’s logistics costs were around 16 percent of the GDP, compared with the international average of around 10 percent. As a result, additional costs were incurred in transporting goods from production centres to retail markets, which ultimately affected consumers.

He said improving connectivity, ensuring uninterrupted and affordable energy, and establishing an efficient supply chain would create opportunities to reduce commodity prices.

Urging people not to expect immediate results in reducing commodity prices, he said it took time to develop the necessary infrastructure and energy capacity. The government was working to develop new LNG infrastructure, ensure gas supplies and ensure the uninterrupted operation of power plants.

Regarding seasonal price increases of green chillies, onions and vegetables, he said that although domestic production had increased, supply shortages occurred at certain times of the year.

To reduce this seasonal gap, the Ministry of Agriculture was taking initiatives to increase planned production, including through contract farming.

The commerce minister said that if improvements in energy, infrastructure, production and the supply system moved forward together, market stability would increase and the cost of living could gradually be reduced.