indianarrative

Trade agreement with Bangladesh will boost economic activities: Piyush Goyal

Piyush-Goyal.webp

Union Minister Piyush Goyal

With the United Nations deciding to move Bangladesh out of the least developed nation status, Dhaka is shifting gears to sustain growth in the post Covid 19 phase while going all out to woo foreign investors.Commerce and Industry Minister Piyush Goyal, speaking at the Bangladesh International Investment Summit has outlined five focus areas-- trade, technology, connectivity, health, entrepreneurship and tourism, which would strengthen India-Bangladesh relationship. Over 350 Indian companies are currently registered in Bangladesh providing jobs and economic activity in the country.

Goyal added that India is developing two economic zones at Mirsarai and Mongla in Bangladesh.

Also read: India tops World Bank list in foreign remittances with $87 billion in 2021, China ranked 2nd

Earlier, India’s Ambassador to Bangladesh Vikram Doraiswami said that foreign direct investment from India into the South Asian nation is estimated at over $3 billion. “The investment of Indian companies in Bangladesh is increasing. If you observe, the companies that have already invested in the country, they are reinvesting," he said.   

Underlining that Bangladesh is India’s largest trade partner in South Asia with a volume of $10 billion, Goyal said that the proposed Comprehensive Economic Partnership Agreement (CEPA) will further boost commerce between the two neighbours.

Meanwhile, The Daily Star, in a report said that the rate of foreign direct investment into Bangladesh remains low at about 1 per cent of GDP--one of the lowest in Asia. Sources told India Narrative that Bangladesh is making an all-out attempt to reverse the trend.

“The country is already preparing for economic measures for the long run as it will be out of the LDC list…attracting foreign investments in one of the critical ones,” one of them said.