Dhaka, July 15 (IANS) India’s investment in Bangladesh is huge and will increase exponentially due to “three reasons”, a Dhaka-based leader business personality said.
In an interview with IANS, Abdul Matlub Ahmad, who is the President of the India-Bangladesh Chamber of Commerce and Industry (IBCCI) and Chairman of Nitol-Niloy Group of Companies, said New Delhi is such a good friend of Dhaka which was once again proved by the resumption of urgent supply of oxygen from India through Benapole port.
He said Indian investors are keen on Bangladesh as “three important reasons are behind this”.
“One of the three reasons is competitive labour cost in Bangladesh, which is one-third of Indian labour cost. Secondly, Indian investors get a huge market of 1.70 million people of Bangladesh-a fast rising middle class is prompting demand.
“And the third reason is, Bangladesh being a LDC country has duty free access to 39 countries of the world, including India.
“Any goods which is produced in Bangladesh can be declared ‘made in Bangladesh’ products provided they have 30 per cent value added in Bangladesh. Raw materials exported from India can also be exported to India be duty free if the required value add is made.
In addition to the huge Bangladeshi market, for any exports, the Indian investors are getting a good amount of export incentives and tax benefits from the Bangladesh government. This inspires the foreign investors to invest in Bangladesh,” he said.
At the same time, Ahmad said that importing raw materials from India is the easiest, cost effective, fastest, as also safest for Bangladesh.
For goods movement during amid the Covid-19 pandemic between India and Bangladesh, both the friendly government agreed to uninterrupted movement goods through the various land, road and rail borders, he said, adding that this has helped Dhaka to avoid shortage of industrial raw materials, food items and vital products like oxygen.
Ahmad also envisaged huge Indian investments into the three SEZs reserved for the Indian investors.
“The future of Indo-Bangla trade and investment relationship shall rise to great levels. The golden era in investments has finally arrived.”