New Delhi (IANS): India-Bangladesh bilateral trade can double by 2011, says the Federation of Indian Chambers of Commerce and Industry (FICCI), which has suggested a multi-pronged action agenda for creating a favourable investment climate.
According to FICCI, India's trade with Bangladesh increased from $1 billion in 2001-02 to $3.17 billion in 2007-08, more than three folds, mainly on the back of a 79.4 percent increase in India's exports.
To enhance the economic linkages between the two neighbours, it has recommended a series of measures including reduction of tariff levels on both sides to increase market access and comprehensive Motor Vehicular Agreement for seamless movement of cargo to the delivery point.
The FICCI has also suggested an agreement on rail link for cross-border movement of containers and simplification of pre-shipment inspection system and simplification of export licensing and banking and banking procedures for import financing.
The government in Dhaka should also look at single-window clearance for new investment proposals in Bangladesh, exploring the possibility of an industrial zone and set up an industrial park for India in Bangladesh, the industry body said in a statement.
It should also look at the possibility of allowing direct container movement by barges from Kolkata to Narayanganj, containing various consumer durable items, the FICCI said.
The recently signed bilateral investment and protection treaty between India and Bangladesh would further strengthen the framework for trade and investment between them, it said.
The FICCI has identified certain key sectors for enhancing trade ties between the two countries. They are textiles, leather, frozen foods and fisheries, jute, agro based industries, FMCG, engineering, chemicals and petro chemicals, ceramic, pharmaceuticals, steel and infrastructure.
Source : The Hindu