To enhance the economic linkages between India and Bangladesh, Ficci feels a multi-pronged action agenda is needed for creating a favourable investment climate for Indian companies in Bangladesh and double bilateral trade by 2011 and address the trade imbalance faced by the neighbouring countries.
Ficci has suggested series of measures, including reduction of tariff levels on both sides to increase market access and comprehensive Motor Vehicular Agreement for seamless movement of cargo to the delivery point.
India?s trade with Bangladesh rose from $1,000 million in 2001-02 to $1,855 million in 2006-07. In 2007-08, bilateral trade jumped to $3,175 million, an increase of 71% over the previous year, mainly on the back of a 79.4% increase in India?s exports.
The industry chamber has also suggested an agreement on rail link for cross-border movement of containers and simplification of pre-shipment inspection system and simplification of export licensing and banking procedures for import financing.
Also, there should be reduction in tariff levels on both sides to increase market access and discourage unofficial trade. Much of this would be achieved through SAFTA agreement but the remaining must be addressed through a bilateral FTA between India and Bangladesh that respects rules of origin, it has been pointed out.
The government in Dhaka should also look at single-window clearance for new investment proposals in Bangladesh, exploring the possibility of an industrial zone and set up an industrial park for India in Bangladesh, the industry body said in a statement.
It should also look at the possibility of allowing direct container movement by barges from Kolkata to Narayanganj, containing various consumer durable items, the Ficci said.
A joint study by Bangladesh and India is needed to look into enhancing the potential of Inland Water Trade as an important mode for both transit and bilateral trade between India and Bangladesh.
As part of facilitation measures, in terms of EDI/IT installation, standardisation of documentation, adoption of simplified and transparent customs procedures, etc should be strengthened to cut down cargo clearance time.
The recently signed bilateral investment and protection treaty between India and Bangladesh would further strengthen the framework for trade and investment between them, it said.
Several key sectors for enhancing trade ties between the two countries have been identified, which include textiles, leather, frozen foods and fisheries, jute, agro-based industries, FMCG, engineering, chemicals and petro chemicals, ceramic, pharmaceuticals, steel and infrastructure.