Businesses upbeat about Indian market

The Indian business is giving a strong signal that it wants to engage in trade with its counterpart in Bangladesh, said Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Fazlul Hoque on Wednesday.

"Earlier we received a strong resistance from the Indian apparel manufacturers, but this time they have shown not only keen interest in our business but also recommended to their government that it increase the duty-free quota of readymade garments to 14 million pieces from 8 million pieces," he said.

Mr Hoque was a member of the entourage of the prime minister during her recent visit to India.

Sharing his experience with newsmen at a city hotel, he said the Bangladesh business delegation had a fruitful discussion with its counterpart and the Indians are convinced that there is a big opportunity for business with Bangladesh.

"The Indian retail market is as big as $27 billion's worth and it is growing at a pace of 18 per cent, and it is not possible for the Indian manufacturers to supply the commodities," he said.

"We proposed them that since they need partner as far as RMG products are concerned, Bangladesh can be a good partner," he added.

The main problem with the Indian business circles is that they are not aware of the high-class products produced in Bangladesh, Mr Hoque said.

"When we told them we manufacture brand items, they said they were not aware of it," he said.

The Indian business people advised the Bangladesh delegation to hold a 'single country fair' in different Indian cities and said it would bring positive results, the BKMEA president added.

Referring to Indian retail market, he said, "I went to a shop and found that a muffler was selling at Rs 80,000."

There are huge opportunities there, and as small country Bangladesh should take the advantage through economic diplomacy, said Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Salam Murshedy. He also accompanied the prime minister during her India visit.

"We did not see any negative attitude on the part of the Indian business people during the recent visit," he said.

"The Indian side is very much developed in the fashion field and Bangladesh can take its help," he added.

"In non-cotton garment production, India can extend its hand to Bangladesh," Mr Murshedy said.

The business people face visa problem while visiting India and the Indian government has assured us that it would look into the matter, he said.

Pran group managing director Amjad Hossain Khan said the seven- sister states are an extension of Bangladesh market and the country should exploit the opportunities.

About the 300 million people live in the north-eastern part of India, and it is a very lucrative market for Bangladesh, he added.

When his attention was drawn to connectivity, he said, "Have confidence in the private sector and we will capture the Indian market."

"Even if Bangladesh allows connectivity, it will be difficult for Indian companies to capture market in the seven sisters," Mr Amjad said.

"There are some non-tariff barriers, but it can be removed through negotiations," he said.

The non-tariff barriers include road network, banking facility, storage, certification and visa, he added.

Pran is the biggest Bangladesh exporter to India with a target of exporting Tk 2.5 billion this year. It exports food items and plastic goods.

"The industrial group exports its commodities to 70 countries, but India is our biggest market," he added.

Hamim Group managing director AK Azad said the country would get $1 billion in Indian loan at a rate 1.7 per cent for 40 years for development of roads and railways and capital dredging.

"It is good gesture from India and the country will also supply 250 megawatt of power to Bangladesh," he added.

It is a good beginning and the engagement should continue to mutual benefits, Mr Azad said.

Standard Bank chairman Kazi Akramuddin Ahmed said the visit of the prime minister was successful.

"The most important is the implementation of agreed agreements, not how many agreements or memoranda of understanding have been signed," he said.

"The ice has been broken and we hope that there will be a new beginning from now on," he added.

A large number of businessmen who went to India as part of the prime minister's entourage attended the programme.

Source:thefinancialexpress-bd.com/