Economy

Are Indian businesses ready to invest in 2 dedicated SEZs in Bangladesh?

Will Indian businesses now look at expanding their investments in neighbouring Bangladesh?

“Healthy” foreign direct investment (FDI) from the Indian business community into Bangladesh will be crucial to deepen bilateral ties and mutual trust between the two countries.

Dhaka is developing two dedicated special economic zones, one at Mongla and the other one at Mirsharai specifically for Indian investors. A Dhaka based analyst said Indian investors now need to take advantage of the SEZs.

At present Indian investment into Bangladesh is estimated at a little over $ 3 billion despite Dhaka being one of the largest trading partners of India.

“The Indian government too wants to encourage companies to expand their investments in Bangladesh, which is a key country under (Prime Minister Narendra Modi’s) Neighbourhood First approach,” a person familiar with recent developments told India Narrative. The person also said that Indian investments in Bangladesh would not only boost the economy of the neighbouring country and create jobs there but will also help in connectivity and overall development of the northeastern states.

Industrialist Gautam Adani has already reiterated the need to complete the transmission line being constructed as part of the 1,600 MW Godda power project by this December. This power plant is critical for power exports to Bangladesh, which is currently facing an acute electricity shortage driven by the global energy crisis.

“We are committed to commissioning our 1600 MW Godda Power Project and dedicated transmission line to Bangladesh by Bijoy Dibosh, 16 Dec 2022,” Adani said in a tweet.

Earlier, the Godda power plant was expected to commence by 2021 but the project implementation was hit due to Covid related restrictions which were in place since 2020.

“The time is ripe for the Indian business community to focus more on Bangladesh and take advantage of its economic growth, cheaper cost and huge consumer base,” Bangladesh Prime Minister Sheikh Hasina meanwhile said while addressing the Indian business community in New Delhi yesterday.

Hasina, who leaves for Dhaka today after a successful four day trip to India, added that the ties between India and Bangladesh should not just be based on trade but investments must also increase.

At another event organised by industry body Ficci, Salman F Rahman, Private Industry and Investment Adviser to Prime Minister of Bangladesh, pointed out that the industry should also look at improving the markets in the North-eastern region in India. “When you (industry) look at the Bangladesh market, don’t just look at this market but combine it with the northeast market. Both, Bangladesh and northeast market offer good transit facility including road, railway and waterways and it will be a win-win for both Bangladeshi and Indian businesses,” he said.

Also read: India and Bangladesh sharpen focus on trade deal during Hasina’s visit

India, Bangladesh economic integration key for development of both countries

Mahua Venkatesh

Mahua Venkatesh specialises in covering economic trends related to India and the world along with developments in South Asia.

Recent Posts

VINBAX 2024: Vietnam-India bilateral army exercise concludes at Kaushalya Dam

The fifth edition of the historic Indo-Vietnam Joint Field Training Exercise, VINBAX-2024, successfully concluded its…

14 hours ago

India-Russia strengthen defence ties at 22nd Working Group meeting on military technical cooperation

The 22nd meeting of the India-Russia Working Group on Military technical cooperation and defence industry…

14 hours ago

“I want to have strong representation of India at World Nuclear Exhibition 2025”: Sylvie Bermann

Sylvie Bermann, President of the World Nuclear Exhibition expressed confidence in India's nuclear supply chain…

16 hours ago

PoJK: Joint Awami Action Committee protests against government following new ordinance, many injured

Joint Awami Action Committee core member Shaukat Nawaz Mir has condemned the attack of police…

16 hours ago

PM Modi meets 31 world leaders, heads of organisations during his 3-nation foreign visit

Prime Minister Narendra Modi participated in 31 Bilateral Meetings and informal interactions with global leaders…

18 hours ago

India- Australia conduct 11th Indian Air Force-Royal Australian Air Force Air Staff Talks

India and Australia conducted the 11th edition of the Indian Air Force and Royal Australian…

18 hours ago