Indian firms may invest around $9-10 billion in Bangladesh

[Bengal_Tiger]

Big Indian investors likely to visit Bangladesh next month
IBCCI president tells media



FE Report

At least seven large Indian investors including Tata Steel, Bharat Heavy Electricals, Airtel, and RPG Group (CEAT Tyre) are expected to visit Bangladesh early next month to submit their large investment proposals to the government.

This was disclosed by India -Bangladesh Chamber of Commerce and Industry (IBCCI) President Abdul Matlub Ahmed Saturday in Dhaka.

"The big Indian investing companies are interest to

invest in gas drilling, tyre manufacturing, gas pipeline, power grid project, railway and telecommunication sectors in Bangladesh," Matlub told a briefing, arranged at a local hotel to analyse the impact of recent visit of Indian Prime Minister Dr. Manmohan Singh to Bangladesh.

Mittal of Airtel, Harsh Goenka of RPG Group, vice chairman of Tata Steel B Muthuraman and chairman of Bharat Heavy Electricals Limited B Prasad Rao are among the top Indian investors who are likely to visit Bangladesh.

Each of the large Indian companies has proposed investment worth above $1.0 billion, Matlub added saying discussion on the proposed investment has already been started with Board of Investment.

A Special Economic Zone for Indian investment is being planned at Chhatak, Sylhet on 100 acres of land, which is owned by Nitol Group, the IBCCI President said.

The proposed investment may be in the form of joint venture, Foreign Direct Investment (FDI) or under the Public Private Partnership (PPP) initiative, Matlub elaborated.

Terming the recent visit of Indian Prime Minister Dr. Manmohan Singh to Bangladesh a success, the IBCCI President said the deals signed during the visit would be beneficial for both the countries, particularly for Bangladesh.

Matlub claimed under transit arrangement, the businessmen of India, Bhutan and Nepal were ready to provide logistics to Bangladesh government at half of the current cost for carrying goods from one country to another and from one state to another state of India.

He expressed the hope that both the agreements on transit and sharing of Tessta water would be signed within 2011.


http://www.thefinancialexpress-bd.co...ate=2011-09-11

[Maulik]

Great news. Lets work for trade in south asia and old glory of subcontinent will reaturn soon. .there should be mechanism like EU in south asia. .

[Bengal_Tiger]

Each of the large Indian companies has proposed investment worth above $1.0 billion, Matlub added saying discussion on the proposed investment has already been started with Board of Investment.

1. India is an emerging global power (power not superpower) which for instance is becoming more influential than the UK. India has given African states $5 billion in aid for example expanding its influence in that resource rich continent something declining Britain couldn't.

2. New Delhi has decided to abandon decades of hostility towards Bangladesh and adopt a more positive attitude and this will pay off dividends for India in a market almost the same size as BRIC member, Brazil.

3. If each of the companies above invested an average of $1.3 billlion that would be a total investment of $9.1 billion, if it's $1.5 billion then it would be over $10 billion.

This will also encourage other states especially Asian ones to grab shares in the juicy Bangladeshi cake before India takes the lions share. So China, South Korea and others will join in. Samsung has already spoken about a $1 billion investment in Bangladesh.

Bangladesh - India relations

A year ago, myself like many other of my countrymen would have been very suspicious of any Indian involvement in Bangladesh, partly because of a lot of the propaganda we are fed by the right, especially those emanating from the pro-Pakistan "Jamat i Islami".

However I started to look beyond the propaganda and realized that a lot of it was exaggeration. Another factor for me personally was arrogant Pakistanis claiming we were a poodle of India, which put me off increased Indian influence in Bangladesh. However I came to some realizations.

1. Right-wing Pakistani nationalists do not respect Bangladesh as a sovereign independent country like Sri Lanka or Iran, but as "their" long lost province of "East Pakistan", which they still feel "hurt" at "losing".

The arrogant and greedy nature of this "hurt" is highlighted when you remember for 1/4 a century Bengalis were treated like 2nd class citizens, discriminated, the money from East Pakistan was stolen to fund the west, elections whereby a politician from East Pakistan (the majority in the then united Pakistan) won were not accepted and he was banned from taking office, and then a military operation of genocide took place, after which the newly independent Bangladesh had to accept and pay off its share of the debts of the united Pakistan but recieved none of the assets.

Complete day light robbery against a province whose only crime was to play by the book, participate in elections and then resistance an illegal military operation against it.

For all this the Pakistani right-wing (army etc) consider us as "traitors"

2. However it isn't simply a closed case for them. The Americans were defeated in Vietnam and moved on. The Russians were defeated in Afghanistan. The Pakistanis still think of "East Pakistan" and pay attention to what goes on there, instead of simply forgetting all about it.

The attitude of the Pakistan right-wing is partially like that of China to Taiwan with a difference. China regards Taiwan as part of its territory. Right-wing Pakistanis regard it spiritually as "belonging" to them.

I realized their strong hostility towards any, even the most simple, Indian involvement in Bangladesh was not due to any concern over Bangladeshi sovereignty but jealousy and bitterness.

Jealousy: At that India was having good relations in "what was once Pakistani soil", when by rights (in their eyes) Bangladesh/East Pakistan still spiritually belonged to Pakistan and India should have no presence there at all.

Bitterness: That they lost the 1971 war and India being involved there just excassibated those wounds.

Then I realized a lot of the concern over India in Bangladesh was heavily exaggerated (I will leave it to you guess by whom) and that bi-lateral trade, bi-lateral investment and a transit were natural.

- China occupies 25% of Kashmir and has nukes pointed at India, but both countries do billions of dollars in business. Doing business was not selling out.

China regards Taiwan as a part of China and has made it part of its constitution that any declaration of Taiwanese independence means that by law Beijing must send in troops to capture the island even if that means a direct war with the US.

The two states do billions of dollars in business and investment. Doing business was not selling out.

China, South Korea, Japan, Vietnam all do business with each other despite their disputes.

So it was in fact:

- Illogical.

- An aberration.

- Unnatural.

For Bangladesh not to do the same with India.

I also realized that even if Bangladeshis did what right-wing Pakistanis wanted to do, they would still be looked down upon. In Bangladesh we have a few Pak-wannabes called "razakaars" who are against the existence of Bangladesh and want it to be a province of Pakistan. They adore Pakistan. The thing is, even these people are looked down upon by Pakistanis. So no matter what we did it would not be accepted.

Now all of this may seem bizarre to people like Afghans who see Bangladesh as a normal sovereign state who can do whatever they want to do. However to put it in perspective, Pakistani nationalists (including their "Pathans) see Bangladesh ("East Pakistan"), in the same way some Afghans see Khyber-Pakhtunkhwa as lost land, or as some Arabs see what is now Israel as lost land.

In fact "Pathans" would rather have East Pakistan "back" then have union with Afghanistan or Pashtun parts of Afghanistan. One brainwashed Pathan even told me this in another forum and said he didn't care about Afghan Pashtuns.

Anyway I am merely sharing some thoughts with you on the India-Bangladesh rapprochment and the anger that Pakistani nationalists would have at this.

[Bengal_Tiger]

Great news. Lets work for trade in south asia and old glory of subcontinent will reaturn soon. .there should be mechanism like EU in south asia. .

I agree 100%.

Taiwan, South Korea, Japan are all benefitting from the gigantic 1 billion + Chinese market.

Why, shouldn't we in Bangladesh do the same and benefit from the huge Indian market which is almost the same size?

It's a win-win.

My rather long post above was to explain some of the dynamics at work and who instigates a lot of the anti-India feeling in Bangladesh (though some policies of New Delhi governments are flawed e.g. the previous ban on Bangladeshi TV). The "Jamat i Islami" in Bangladesh are Pakistani-wannabes and are funded by them and the ISI.

They do have influence as the main opposition party the BNP has to have an alliance with them to be in power. The previous government was a BNP-Jamat alliance with Jamati ministers in the cabinet.

However in the long run such fools and their masters in Pakistan cannot stop the normal and natural practice of two independent states next to each other maximizing their trade relations.

[Bengal_Tiger]

Trade with India to get a boost

IBCCI assesses bright prospects of business between Bangladesh and India


Star Business Report

India-Bangladesh Chamber of Commerce and Industry (IBCCI) yesterday praised the visit of Indian Prime Minister Manmohan Singh as successful as both countries agreed to boost bilateral trade.
The chamber hopes that the transit agreements among Bangladesh, India, Nepal and Bhutan will be signed this year to harness the trade potential of the region, said IBCCI President Matlub Ahmed in a press briefing at Ruposhi Bangla Hotel.
Ahmed said Singh's pledge to remove non-tariff and para-tariff barriers to two-way trade, the opening-up of a deputy high commission office of Bangladesh in Mumbai and import of 500 megawatts of electricity from India are positive signs in business.
“I hope Bangladesh's exports will increase a lot thanks to the duty-free access for 46 garment products to India. On the other hand, a lot of Indian investment will come to Bangladesh because of an investment protection agreement with India,” Ahmed said.
As a testimony of growing business interest, Ahmed said, a high-powered business delegation from India is visiting Bangladesh in the first week of October.
Four companies -- TATA Steel, Reliance, Bharat Heavy Electrics and Airtel -- have so far confirmed the visits of their top officials, he said.
“We are expecting billions of dollars in investment from those companies in gas drilling, telecom, vehicle wheels, roads and highways construction, railways and electrical grid,” he added.
Ahmed hopes the construction of the proposed first special economic zone at Chhatak in Sunamganj for Indian investment will start in January next year as talks with the government are on.
A total of 100 medium industries could be set up on 100 acres of land if the government approves the economic zone on the private land owned by Ahmed's Nitol-Niloy Group.
He said the government will sign a deal soon allowing India to use Chittagong and Mongla Ports. Ahmed said a factory will be opened at Kishoreganj in Bangladesh next year to produce TATA Ace, a small truck-van, as TATA Nano might not be produced as the project will not be commercially viable, he said. Ahmed is the agent of Indian TATA Ace in Bangladesh.
In fiscal 2010-11, Bangladesh exported to India goods worth $512 million, up from $276 million a year earlier.
By one estimate, the formal and informal trade of India with Bangladesh could be $6 billion a year, with $3 billion in formal channels.

http://www.thedailystar.net/newDesig...php?nid=201998

[Bengal_Tiger]

Bharat Heavy Electricals



Bharat Heavy Electricals machinery.



Tata





Airtel

Airtel Bangladesh New Add [2011] - YouTube

Bangladesh Airtel commercial.

[sthek]

great news bengal tiger

[Bengal_Tiger]

Tata Motors wants to grow faster in Europe - YouTube[/URL]

Tata trying to expand in Europe.

Tata Manza - A class apart - YouTube[/URL]

Tata Manza.

Tata Pixel, new city car concept for Europe - YouTube[/URL]

Tata pixel.

TATA Vista Electric Car 2011 Launch Film - YouTube[/URL]

Tasta vista electrical car.

Bangladeshi car market is dominated by Japan with Honda and Toyoto. Europe and America are too far away.

Bangladesh produces its own TVs, DVD players, mobile phones, motorcycles but there is no Bangladeshi-produced car yet. That should change in the future with the Asian big boys (India, Japan, South Korea) more getting more involved and the subsequent ToT (Transfer of Technology). Mitsubishi has already signed a deal to produce Pajeros in Bangladesh.

[Maulik]

India's decision to extend duty-free access to 46 Bangladeshi products can be a "game-changer" in Indo-Bangla trade ties, with local manufacturers saying the move can boost apparel export to India by $5.0 billion in five years.


Apparel makers said India's unilateral tariff removal was "the best thing to have happened to Bangladeshi exports" as the country enjoys competitive advantages in majority of the 46 garment items that are expected to be positively impacted by the Indian decision.

They, however, cautioned that a backlash from the powerful Indian textile lobby could be round the corner, as textile makers are major employers in India and they can force New Delhi to slap trade-restrictive safeguard measures on the Bangladeshi garments.

CITI, the Indian textile association, has already petitioned the government, warning the move could impact the fate of 35 million Indian textile workers and a large number of small and medium garment factories.

Shafiul Islam Mohiuddin, president of Bangladesh Garments Manufacturers and Exporters Association (BGMEA), said the government should now "stay vigilant" against any move to set the decision about the duty-free access at naught.

"This can be game-changer in Bangladesh-India trade-ties. Previously, India would give duty-free access to those items which we don't produce or where we don't enjoy any competitive advantages," he told the FE on Wednesday.

"But these 46 items are all garment products. We are highly competitive in these items. I am confident we can even raise our exports to $5.0 billion to India if New Delhi sticks to its duty-free decision," he said.

It means garments alone can neutralise Bangladesh's $4.0 billion trade deficit with India. In fiscal year (FY) 2010-11, the country imported Indian merchandise worth $4.5 billion and exported around half a billion dollars.

Presently, Bangladesh can export 10 million annually pieces of garments, free of duty to India. The amount is the annual production of a mid-sized local garment factory.

According to the BGMEA, Bangladesh apparel shipment to India stood at $35 million in FY 2010-11, out of the total overseas sale of $19 billion. The amount is 0.0013 per cent of India's $28 billion clothing market.

"Our products have a large demand in India but we could not export in volume due to the quota system," said Siddiqur Rahman, second vice president of BGMEA.

"India could be the third largest destination of our garments after the European Union and the United States following last Tuesday's decision. Our garment manufacturers have been making these products for years," he said.

Selim Osman, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said knitted items such as t-shirt, sweater, pullover account for 25 of the 46 items, while woven products constitute the rest.

"There are many clothing products we can not export to the EU and the US. But they have good demand in India. If we can enter the Indian market with a population of 1.2 billion, the size of our sector will be doubled," he added.

"It opens a big door," he said adding the Bangladeshi small and medium garment makers will be the main beneficiaries of the Indian decision.

According to The Hindu Business Line, an Indian financial daily, the apparel items that have been allowed duty-free access include pants, shirts, blouses, skirts, kidswear, cotton nightwear, jeans, swimwear and tracksuits.

There will be "severe adverse impact" on the garment clusters in Tirupur, Ludhiana and West Bengal, CITI claimed, adding that all 46 products cover most of Bangladesh's total garment production in terms of quantity.

BGMEA president Mohiuddin warned that once Bangladeshi exports started making headway in the Indian market, New Delhi could opt for Turkish-style safeguard taxes on Dhaka's clothing items."

In Turkey, we raised our exports to $650 million in just two years. But that created panic among the Turkish garment makers, who this year forced their government to slap 27 per cent anti-dumping taxes on our products," he said.

"The government should be prepared for such an upshot and stay vigilant against any move by any quarters to jeopardise the duty-free access," he said.

According to the World Trade Organisation (WTO), India has slapped the highest number of trade-restrictive safeguard taxes on foreign goods, which included Bangladeshi batteries and jute itmes for sometimes.

New Delhi lifted the anti-dumping duty on Rahimafrooz's batteries only after Bangladesh took up the case to the dispute resolution committee of the WTO.

[Shayesta]

Good on Bangladesh, I hope even Afghanistan one day becomes stable enough for similar foreign investments. Not aid.

[Bengal_Tiger]

Afghanistan has the potential to be a rich country, despite the misconceptions some have that it "being landlocked and dependent on outside powers".

1. It is the gateway to a strategic resource rich region, Central Asia, and is mineral rich itself.

2. It has a population larger than any of the Central Asian states.

Here in London, there are Afghans who have come with nothing and then worked hard. First they would sell e.g. phone cards on small boxes on the streets, work extremely hard then eventually progress on to a stall and sell more products. They would work hard on the stalls and then progress on to running a shop. After working hard on the shops they would eventually end up buying quite a few properties and end up as "paper millionaires" (millionaires in asset value).

However the main thing Afghanistan is regional and internal stability and that is in some ways (apart from Pashtuns interacting online) is perhaps the whole purpose of the forum.

We Bangladeshis wish our Afghan brothers and sisters the best of luck.

[Bengal_Tiger]

http://www.bssnews.net/newsDetails.p...ate=2011-10-11

Apparel exporters eye $3b export to India

DHAKA, Oct 11 (BSS) – Encouraged by the duty-free access to Indian apparel market, Bangladeshi readymade garment (RMG) exporters are expecting to fetch about three billion US dollars from the Indian apparel market of US$30b.
Business leaders said local exporters have already started RMG export to India after it offered duty and quota-free market access of 46 Bangladeshi textile products during its Prime Minister Manmohan Singh’s September 6-7 Dhaka visit.
“There’re no guidelines on Bangladesh’s garment export to Indian market with regard to tariff facility as it is a matter of business people,” Abdul Matlub Ahmad, president of India- Bangladesh Chamber of Commerce and Industry (IBCCI), told BSS today.
On guidelines for export of duty-free garment products to India, Matlub said a target has been set to export goods valued one billion US dollars to the potential market.
“Everything is basically on track. We will achieve the target.”

Echoing the Matlub, President of Bangladesh Garment Manufacturers and exporters Association (BGMEA) M Shafiul Islam Mohiuddin said some local manufacturers have already started exporting RMG goods to India keeping in mind the tariff treatment.
Mohiuddin said the Indian prime minister announced the duty- free market access at the request of Bangladesh and a notification was issued too soon after the announcement. Therefore, he said, there is nothing to make guidelines on the tariff treatment.

Leading global chain stores and corporate houses have started doing business in India, he said, adding that there is a huge potential of Dhaka-Delhi trade.
Abdus Salam Murshedy, former BGMEA president, said local exporters are discussing with Indian retailers and pricing being given to customers.
“We have a lot of preparations to kick off apparel export to Indian market in a big way. I think it is the beginning and we will get new orders from India next year,” said Murshedy, also president of Exporters Association of Bangladesh (EAB)

Commerce Minister Lt Col (retd) Faruk Khan said he would lead a team to India within a month or two to explore the RMG market and give retailers an overview about Bangladesh apparel industry.
Khan said the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) leaders, mainly apparel exporters, would be in the team.
He said Bangladesh’s apparel export to India is on the sharp rise as it has exported RMG goods worth 35 million US dollars to India last year.
Bangladesh’s imports from India in 2009-10 totaled 3.2 billion US dollars against its exports of just $304.63m with the trade deficit remaining nearly at $3b mark in the fiscal.
India is Bangladesh’s second most important import source after China and ranks fifth as Bangladesh’s export destination.

[gadoonwal]

good move and good luck to bangladesh

[shehazadi]

I do not like the government of India since they intervene in my country Nepal.

[gadoonwal]

I do not like the government of India since they intervene in my country Nepal.

,welcome,
shahzadgy/shahzadi


Other countries like siri lanka and butan have the same concern about india.
in nepal they have very strong influence.