Dhaka, Bangladesh (BBN)- Indian authorities can encourage their businesses to utilize Bangladesh as low cost manufacturing base to produce goods for local, Indian, and external markets, taking into account favored market access for exports from the country, Atiur Rahman, former central bank governor, said.
“For that to happen Bangladesh needs energy to accelerate investment in manufacturing,” the former Bangladesh Bank (BB) governor explained while addressing at a seminar on Indo-Bangladesh Cooperation for Mutual Sustainable Growth Acceleration held at a local hotel on Wednesday.
The Asian Age, a local newspaper, organised the seminar aiming to expedite bilateral relations between the two countries.
Dr. Rahman also said given the opportunities for cooperation of sharing electricity from the region through desired interconnectedness of grid and enhancing trade the region could generate, on average cost savings of approximately US$9.0 billion per annum relative to the status quo.
“…. India and Bangladesh should focus on how to further improve cross-border institutional arrangements, expand regional transmission capacity and develop a competitive regional power market,” the former BB governor said in his keynote address at the seminar.
Deepening and widening of trade and economic cooperation in the region requires major simplification and facilitation of customs clearance procedures in overland goods flows in the trade value chains, allowing cross-border movement of cargo laden vehicles, according to Professor Rahman.
Mr. Rahman, who teaches development studies at Dhaka University, also said Indian investments in development of sea port or land port and transport arteries in Bangladesh will greatly facilitate export and intra-regional trade flows.
Besides, the potential for development of blue economy following settlement of maritime coastline dispute has increased significantly, he added.
“Both countries can now invest in joint exploitation of oceanic resources by sharing their technical expertise and develop processing and other industries for meeting both local and international demand, the former governor noted.
Bangladesh and India are already cooperating in strengthening AML/CFT surveillance in the region.
“We are also working together in meeting the challenges of terrorist financing. This will help promote a regional environment that both regional and external investors will feel more secure and safe,” Dr. Rahman observed.
He also said the potential for cooperation for faster and sustainable economic growth between India and Bangladesh is indeed unlimited.
“With its common heritage and proven history of sharing blood in critical time of Bangladesh’s war of liberation in 1971 there is a built-in imperative for further deepening of cooperation for mutual economic and other gains.”
After a long period of fumbling both countries are now politically poised to develop the infrastructures for desired level of economic cooperation, he added.
He also said: “Now that the mind-set of policy makers of both the countries has changed for greater cooperation the challenge is how to design doable projects and programs for mutual economic gains. And here comes the strategic roles of the policy makers and private sector investors of both the countries for engaging themselves in a manner so that the level of mutual economic cooperation can be taken to a new height.”
The former governor said there are enough areas of such cooperation if we are really serious in learning from each other’s success stories and as well as occasional failures.
“Let’s think about the road ahead which is long and can as well be bumpy and steep. Together we can certainly move ahead with caution and humility.”
Permanent Member of the National Institution for Transforming India (NITI) Aayog, Dr Bibek Debroy, emphasised on strengthening regional and sub-regional co-operation organizations like BBIN (Bangladesh Bhutan, India and Nepal) and Bangladesh, China, India and Myanmar (BCIM) instead of SAARC.
“The SAARC can be replaced by other regional co-operation organizations like BBIN and BCIM,” Dr Debroy made the comment while addressing as the chief guest at the seminar.
He also said: “India has made a change in its foreign policy as we have to fight against foreign imported terrorism. We are very aware to provide security to the people of the country. So, regional cooperation and terror can't go together.”
Advisory Editor of The Asian Age M Shamim Chowdhury moderated the seminar while Editor-in-Charge of the newspaper Professor Dr Nazmul Ahsan Kalimullah delivered the address of welcome on the occasion.
Dr Mohiuddin Khan Alamgir, MP and Chairman of Standing Committee on Public Accounts; RAM Obidul Muktadir Chowdhury, MP and Chairman of Standing Committee on Ministry of Chittagong Hill Tracts; Harsh Vardhan Shringla, High Commissioner of India to Bangladesh; and Dr Mirza Azizul Islam, former Finance Adviser to the Caretaker Government, also spoke on the occasion.
Honorary Consul of Malta M Shoeb Chowdhury presided over the seminar.
BBN/SSR/AD