Bangladesh expects investment from India to double to $5 billion in the next three years. India’s neighbour signed agreements worth around $23 million, in Mumbai on Thursday.
“Now, with greater trade ties with India, we want to attract more foreign direct Investment (FDI),” Matlub Ahmad, President, India-Bangladesh Chamber of Commerce and Industry, said.
Bangladesh, during its 42 years of independence has only received $2.5 billion of FDI from India. The country offers a conducive and investment-friendly climate, apart from providing basic infrastructure and working capital loans.
“While garments and agricultural products are exported from Bangladesh, Indian exports include automotives and pharmaceuticals. We feel that Indian investment in Bangladesh, with the possibilities of re-export to India, would help in diversifying the exports of Bangladesh and thereby reduce the trade gap between India and Bangladesh,” Kris Gopalakrishnan, President, Confederation of Indian Industry (CII) and Co-Founder and Executive Vice-Chairman, Infosys said.
A high-level trade delegation from Bangladesh is visiting India and the country is seeking partnerships across 13 important sectors, including agro processing, automobiles, textiles, chemicals, plastics, light engineering, pharmaceuticals and IT.
Bangladesh is targeting a 7.2 per cent growth in GDP this year, compared with 6 per cent last year, and is banking mainly on India for the investments.