INDIAN TRADE DELEGATION'S VISIT
Connectivity stressed, little progress in tariff barriers
The visiting Indian trade delegation last week held comprehensive talks with government leaders and functionaries of the country's business community on Delhi's immediate plan to develop various connectivity network through Bangladesh to reach the Indian north-east.
The talks entirely remained focused on new infrastructure building without revisiting contentious issues like trade impediments that India is creating on exports from Bangladesh at a time when its huge export surplus is only aggravating Dhaka's balance sheet.
Tariff barriers
India has promised duty-free access to Bangladesh exports and further reducing the negative list. But there is no visible progress in removing non-tariff and para-tariff barriers and negative attitude of the Indian bureaucracy at a time when Bangladesh is opening up without knowing much about its cost benefits.
Influential Congress leader, parliamentarian and former minister responsible for development of north-eastern Indian states, Moni Sankar Iyar led the delegation. They visited Chittagong, Comilla, Ashuganj and other places of importance which held the key to opening the transit gateway initially from Kolkata to Agartala to expand the network in phases.
Iyar said, in fact the tariff and non-tariff issues are not the biggest barriers; it is the ''psychological barrier which is at the root of non-cooperation''. It is time it must go, he said emphasizing the need for mutual collaboration to develop this sub-region. He sought the cooperation of Bangladesh in developing the Indian northeast saying it should be a two-way traffic meaning the hand of cooperation should also come from the Indian side to the development of Bangladesh.
Limiting banking outlets
Observers say India is still regulating Indian importers by withholding trade facilitation measures such as limiting banking outlets to open L/Cs for import of goods from Bangladesh.
The major issue for discussion on the table this time was the implementation of the joint declaration made by Bangladesh Prime Minister Sheikh Hasina and Indian Prime Minister Manmohan Singh in last January relating to transit connectivity and how to build new infrastructure supportive to opening of the gateway.
India-Bangladesh Chamber of Commerce and Kolkata-based Merchant Chamber organized the trip of the Indian trade delegation. Iyar especially held talks on improving the navigability of rivers by undertaking dredging to allow movement of Indian cargo ships from Kolkata to Ashuganj, now being earmarked as a port of call for Indian cargo vessals. He also discussed how to mobilize resources in the ground to widen the 40 km Ashuganj to Akhaura road to facilitate the movement of Indian heavy transport vehicles which will initially carry huge equipment for a 1000 MW power plant to be built in Tripura state.
But political analysts infer, once the route will start operating it will assume the nature of permanent transit gateway to the northeast.
Iyar also laid emphasis on Indian investment in Chittagong Port to make it more accommodative to Indian cargo handling to and from its northeastern states. The delegation talked about development of greater road infrastructure from Chittagong to Agartala and beyond to ensure quick connectivity with the port city. They have moreover, talked about developing port facility at Ashuganj and its accompanied cargo handling capacity.
Development of Mongla Port and road connectivity to India and other business destinations came up for discussion in meetings at various levels. The Indian delegation has proposed the formation of a joint working group to advance the cause of the connectivity issues and take up initiatives to promote policies and implement projects at various levels to expedite the development of the transit network.
During the four-day stay here the delegation met Prime Minister Sheikh Hasina, commerce minister Faruk Khan, shipping minister Shahjahan Khan, chairman of Board of Investment Dr S A Samad, FBCCI president AK Azad and other business leaders to forge closer cooperation in securing the Indian business and strategic objectives in Bangladesh.
Working exclusively
Some sources however said the trade delegation is working exclusively with some business groups here led by the Nitol Group. Its chairman Abdul Matlub Ahmed in his capacity as the president of India-Bangladesh Chamber of Commerce and local agent of TATA group is playing the significant role in promoting the connectivity network.
Ahmed told this scribe that this mutuality will bring greater socio-economic gains for Bangladesh and it is time to move with the comprehensive transit project. He said Bangladesh may be earning from US$ 3.0 to 3.5 billion annually from the connectivity related activities to bring boost to the country's economy and business.
The visit ended in a joint statement followed by a press briefing. The joint statement said, "The India-Bangladesh delegation jointly declare their mutual commitment to intensive development of trade, investment, infrastructure and general economic cooperation between the two countries, particularly within the sub-region of South Asia comprising Bangladesh and its immediate Indian neighbours, including the seven states of northeast region.
"It recognized and reaffirmed that the immediate Indian neighbourhood constitutes the natural economic hinterland of Bangladesh and vice versa. Hence, the lost opportunities of the past have to be recovered urgently with a view to re-establishing the economic integrity of this region in line with the vision expressed by the two prime ministers in their joint declaration issued at New Delhi in January 2010.
"The overarching aim of such cooperation is to restore the sub-region to its position of economic eminence in the sub-continent which it enjoyed till a few decades ago.
"To this end, this initiative will be carried forward by mutual visits from and to Bangladesh on the part of India's northeast states, organized by the Indo-Bangladesh Chamber of Commerce and associated chambers in Bangladesh and the Merchants' Chamber of Commerce, Kolkata in collaboration with the Federation of Industries of the Northeastern Region. It was agreed that the next plenary of business persons from Bangladesh and the neighbouring Indian states would be held in Agartala within next six months."
The press release later said, the delegation visited chairman of the Chittagong Port Trust and assessed the present and future handling capacity of the port including connectivity with India, Bhutan and Nepal.
The delegation expressed satisfaction with the port's handling capacity and feels more investment may be made in rail and road connectivity to take advantage of the huge transshipment business coming to Bangladesh in near future.
It said Prime Minister Sheikh Hasina has advised the delegation to take initiative to develop all roads, rail and rivers to revive all connectivity with India so that Bangladesh can reap the benefits of a natural transit country. It said Prime Minister Sheikh Hasina has also showed keen interest to visit Agartala in near future. She has also asked them to invest in river dredging, road and bridge building, refixing railway and such other infrastructure building to make the transportation system functioning smoothly.
The Prime minister has also asked the Indian side to provide 10,000 MW electricity from Sikkim and Arunachal which are building power plants having more than 40,000 MW capacity, the statement said.
The Indian trade delegation also signed memorandum of understanding on 13 projects during their stay here with some Bangladeshi counterparts. It is indicative of growing business and investment that is slowly shaping up following the new turning point in relations between the two countries.
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