Bangladesh offers 2 SEZs to Indian companies

After Prime Minister Narendra Modi’s talks with his counterpart Sheikh Hasina on Saturday, both sides signed a number of <g data-gr-id="28">pacts</g> to spur economic engagement and enhance connectivity so that India’s northeast could be connected to South Asia and with Southeast Asia.

As per the MoU on the economic zone, Bangladesh will offer SEZs to Indian companies in <g data-gr-id="32">Mongla</g> and Bheramara. India becomes the third country after Japan and China to have shown interest in developing economic zones in Bangladesh, media reports here said.

India will develop the economic zone near the government-sponsored one in <g data-gr-id="26">Mongla</g>, which is now under construction, <g data-gr-id="27">Paban</g> Chowdhury, executive chairman of Bangladesh Economic Zones Authority, told The Daily Star.

India wants over 200 acres of land in <g data-gr-id="36">Mongla</g> and 477 acres at Bheramara to establish the zones, he said. The zones will be developed with funds obtained from the $2 billion line of credit from India, the BEZA executive chairman said. “As there will be no uncertainty regarding funds, we expect the zones can be developed in three years,” Chowdhury said.

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 Bangladeshi ports. 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 $6.5 billion out of which India’s export is around $6 billion while Bangladesh exports to India is around $0.5 billion.

Modi, after holding talks with Hasina on Saturday, promised to do “everything” to address the trade deficit.