Dhaka: Bangladesh and India have stressed the need for greater trade and investment cooperation by removing commercial barriers, easing visa procedures, and promoting joint initiatives in infrastructure and emerging technologies. Commerce Minister Khandakar Abdul Muktadir made the remarks at a meeting with a delegation of the Confederation of Indian Industry (CII), led by its Director General Chandrajit Banerjee, at the Secretariat here today, said a press release.
According to Bangladesh Sangbad Sangstha, the meeting discussed bilateral trade and investment relations, existing challenges, and potential areas of future cooperation. The commerce minister stated that the geographical proximity of Bangladesh and India offers significant opportunities to transform connectivity into economic benefits through increased trade, investment, and industrial cooperation.
Despite differences in size, population, and economic strength, Muktadir emphasized that the two countries could benefit from their geographical realities, particularly by expanding trade, connectivity, and investment involving Bangladesh and India's northeastern region. He also highlighted the importance of increasing economic connectivity in South Asia, noting that although the region has a large combined economy, intra-regional trade remains relatively low. Stronger economic integration, he argued, could create new opportunities for industrialization, investment, and employment.
Regarding recent trade restrictions between Bangladesh and India, the commerce minister called for discussions to restore bilateral trade to a normal footing, expressing hope for positive progress within the next few months. Visa-related difficulties faced by business people and professionals were also discussed. Muktadir pointed out that it was impractical for people who regularly travel for business, medical treatment, and other purposes to apply for new visas every few months, urging for cooperation between the two countries to introduce longer-term visa arrangements for regular travelers.
The CII delegation proposed forming two joint task forces to enhance cooperation in infrastructure and high-technology sectors. One task force would focus on promoting private investment and public-private partnerships (PPPs) in infrastructure, while the other would work on future-oriented industries such as semiconductors, green hydrogen, battery storage, and data centers. The CII stated that around Rs 25 lakh crore was invested in India's infrastructure sector last year, with a significant portion coming from the private sector, suggesting that Bangladesh could also attract domestic and foreign institutional investment by drawing on India's experience.
The meeting underscored the importance of utilizing the capacity of local manufacturing industries. Indian business representatives noted that many local enterprises have the capability to manufacture products domestically but have weakened due to various challenges. Strengthening local production, they said, could reduce import dependence and accelerate project implementation. Citing the example of a joint initiative with Energypac, a CII representative mentioned that Bangladesh still imports many products despite having the capacity to manufacture them locally, with imports through land ports taking as long as 40-45 days. Revitalizing local industries, they argued, could significantly reduce such delays.
The CII also expressed interest in investing in the fast-moving consumer goods (FMCG) sector, proposing the establishment of a modern integrated manufacturing facility near Dhaka for products including soap, home-care insecticides, and fragrances. The delegation further stressed the need for an effective regulatory framework to ensure quality control of unregistered products and called for adjustments to the tariff structure to encourage the use of energy-efficient technologies in industries. They highlighted that their steam-related technologies could reduce gas consumption by 10-35 percent in the textile, readymade garment, and food industries, but noted that tariff discrimination was discouraging their adoption.
Additionally, the Indian industry body proposed creating internship opportunities for Bangladeshi youth in Indian companies and extending cooperation to resolve visa-related difficulties faced by Bangladeshi engineers seeking employment in third countries. Both sides emphasized the importance of moving beyond formal discussions by undertaking specific initiatives, increasing private-sector engagement, and establishing institutional mechanisms to make Bangladesh-India economic relations more effective and result-oriented.