New Delhi: India's Foreign Secretary Harsh V Shringla on Monday said that New Delhi is in discussion with Bangladesh for a Comprehensive Economic Partnership Agreement (CEPA).
In his speech at the Bharat Chamber of Commerce on 'Post-Covid Economic Recovery', Shringla said, "Bangladesh is also on track to graduate out of the Least Developed Country status in 2026. As many of the trading arrangements of Bangladesh would change when that happens, India is in discussions with Bangladesh for a Comprehensive Economic Partnership Agreement".
Lauding Bangladesh's economic growth, Shringla said that the country has emerged as India's largest trading partner in the neighborhood and the fifth largest export destination globally. "However, for a country that has been growing at an average annual growth rate of over six percent for the last decade, the potential for trade with Bangladesh is much higher. Bangladesh is also undertaking rapid infrastructure development in the form of airports, seaports, and highways", he added.
Meanwhile, he said, India also played a proactive and responsible role in the global fight against the pandemic. "Even in the most difficult days of the pandemic, we were conscious of the fact that we were part of a greater global community. In the early days of the pandemic, India supplied critical medicines such as Hydroxychloroquine, Paracetamol, and other medical items to over 150 countries", he reiterated
He pointed out that India also shared the healthcare experience and expertise with partner countries, particularly in our neighborhood and Africa. Several medical supply missions were undertaken in the face of daunting logistical challenges.
This was followed by Vaccine Maitri under which we have supplied over 178 million doses of made-in-India vaccines to 96 countries as well as to the United Nations. We have put the teaching of Vasudhaiva Kutumbhum or the ‘World is One Family’ into practice during the pandemic, he said.
Shringla noted that India has made significant investments in creating a robust digital infrastructure. 'This emerged as a strength for us during the pandemic.', he added. It is pertinent to note that India received over 81 billion in Foreign Direct Investment in the year 2020-21. India has today become home to one of the world's largest start-up ecosystems and hosts close to 100 unicorns 40 of which have reached this status in 2021 alone.
Shringla stated that India has placed a renewed emphasis on strengthening ties with its neighboring countries under its Neighbourhood First Policy. This applies not just to working in the political or strategic domains but also to deepening economic ties with our neighbors.
Pointing out that Nepal is a close neighbor and economic partner of India, Shringla said, "it is India’s ninth-largest export market and an important destination for Indian investments. Indian firms account for over 30% of the total FDI stock in Nepal, worth nearly USD 600 million".
About 150 Indian ventures are operating in Nepal in the manufacturing, services, power sector, and tourism industry. Several reforms have been undertaken in recent years in Nepal which are expected to improve the ease of doing business in that country.
Some upcoming areas that may be attractive for the Indian industry include vehicle assembly, hydropower, medicinal and aromatic plants, and pharmaceuticals.
India has also been funding connectivity and trade infrastructure projects to remove the bottlenecks in the trade flow with its neighbors. Connectivity can be a force multiplier for improving the flow of trade and people as well as promoting economic integration.
"As a recent World Bank study pointed out, India’s exports to Bangladesh could grow by 172% through improved connectivity. Steps like a revival of historic rail links – Haldibari-Chilahati being the most recent, the establishment of a new rail link between Agartala-Akhaura, the commencement of rail-based container freight movement, and expansion of inland waterway routes have been facilitated in the last couple of years", Shringla said.
Now, a container cargo can be transported from Mumbai port to Dhaka using railways, and from Patna to various business centers in Bangladesh using waterways. These developments also reduce India's current overdependence on land ports like Petrapole. A series of cross-border connectivity projects like Integrated Checks Posts and cross-border rail links and roads have also been implemented with Nepal.
He highlighted that the Indian economy has proven to be adaptable and resilient, and vaccine distribution and coverage have helped in this regard. "As the world returns to normalcy, new opportunities will be generated. It is time for India to take advantage of these opportunities and expand its economic engagement and drive inflows of foreign investment," Shringla added.
