Bangladesh offers SEZs to Indian companies, offer better connectivity to Indian Shipping Lines

DHAKA : With an aim to boost bilateral trade, Bangladesh offered to establish Special Economic Zones for Indian companies besides allowing Life Insurance Corporation to start operation in the country.

After Prime Minister Narendra Modi's talks with his counterpart Sheikh Hasina, both sides signed a number of pacts to spur economic engagement and enhance connectivity so that North East region could be linked to South Asian counties.

As per the MoU on the economic zone, Bangladesh will offer SEZs to Indian companies in Mongla and Bheramara.

To improve connectivity, an MoU was signed on Blue Economy and Maritime Cooperation in the Bay of Bengal and the Indian Ocean.

A separate MoU was inked on use of Chittagong and Mongla Ports by Indian ships to ensure better movement of goods.

Coastal shipping is the key sector for kick starting the concept of BBIN (Bangladesh, Bhutan, India and Nepal) a sub-regional developmental approach within the eight-nation SAARC (South Asian Association for Regional Cooperation).

Both the sides also renewed a Bilateral Trade Agreement and signed another one on Coastal Shipping which will allow direct and regular movements of Indian ships to Bangladesh ports.

The impact of the coastal shipping agreement would be two-fold: (i) it would relieve the congestion on Indian Land Customs Stations which is an impediment to trade; and (ii) it would contribute to the growth of the Shipping industry in Bangladesh as well as the ancillary services sector.

To ensure the success of the Coastal Shipping agreement, the two sides also agreed on several related agreements. For example, they renewed the Protocol on Inland Waterways and Transport which will boost the Bangladeshi shipping industry and would provide more certainty and predictability to the industry and its investors.

Foreign Secretary S Jaishankar said the pact will help movement of goods and encourage the Shipping industry of Bangladesh.

Opening its insurance sector, Bangladesh handed over consent letter by Insurance Development and Regulatory Authority (IDRA) to Life Insurance Corporation (LIC) to start operations in the country.

The annual trade between Bangladesh is around USD 6.5 billion out of which India's export is around USD 6 billion while Bangladesh exports to India is around USD 0.5 billion.

An agreement was inked between Bangladesh Standards and Testing Institution (BSTI) and Bureau of Indian Standards (BIS) on cooperation in the field of standardisation. In their talks, both Modi and Hasina deliberated on ways to further boost trade ties between the two countries.

Source : dailyshippingtimes.com