Jairam Ramesh

AGARTALA: India has said it could consider removing Bangladesh from the negative list of nations (which are barred from investing in the country) and assured Dhaka that all non-tariff barriers (NTBs) on Bangladeshi imports would be reduced to correct the huge imbalance in trade surplus.

India has already addressed Bangladeshi concerns about NTBs on export of the famous jamdani saris and hilsa fish, a delicacy for Bengalis on both sides of the border. With Indian exports to Bangladesh outstripping imports by 10:1 and Dhaka complaining that the imbalance is larger, India has allowed duty-free import of 80 lakh garment pieces over and above the South Asia Free Trade Association (SAFTA) commitment.

"These examples demonstrate our commitment to faster, freer and fairer trade. India must remove the foreign direct investment (FDI) restraint on Bangladesh. The upcoming meeting of the South Asian Association for Regional Cooperation (SAARC) would be a great opportunity to signal a new economic relationship with Pakistan and Bangladesh by removing them from the FDI negative list. We can retain the right to examine all proposals on a case-to-case basis to allay the fear of security agencies that they could be financing conduits for cross-border terrorist organisations," said Minister of State for Commerce Jairam Ramesh while inaugurating the maiden `single country' Bangladesh fair in Agartala, just 150 km. from Dhaka.

"We are committed to removing all non-trade barriers but in the long run their elimination alone won't be enough to increase Bangladeshi exports to India because it does not have the type of infrastructure. The signals from them are positive," he noted.

As a friendly gesture, Bangladesh is considering a $3 billion (about Rs. 14,000 crore) multi-sector proposal by the Tatas. The public sector Bharat Heavy Electricals Limited (BHEL) will soon start work on a 240-mw plant and Dhaka has allowed India to build a bridge on a river near the Zero Point though construction within 150 metres of the border is not allowed.

Both the Centre and Tripura want Bangladesh to increase infrastructure connectivity, especially by reviving the Agartala-Dhaka rail link.

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