“Prime Minister Sheikh Hasina and her government have given maximum importance to transforming Bangladesh into one of the most favoured investment destinations in South Asia,” the envoy told a seminar at Aurangabad, Maharastra on Friday describing Bangladesh as the “most liberal and business friendly economy” in the region.
The seminar on investment potentials in Bangladesh was jointly organised by Marathwada Chamber of Industries and Agriculture and Bangladesh Deputy High Commission in Mumbai, according to Bangladesh High Commission in New Delhi.
He said pro-investment policies are being implemented along with massive reforms in the relevant government organisations.
With annual economic growth registered at 7.86 percent, Bangladesh, the envoy said, is hungry for more investment in its economy.
Bangladesh needs substantial foreign and domestic investment to keep patch with the high trajectory of economic development, he said.
As one of the world’s fast-growing economy, India can seize the business opportunities offered by Bangladesh. Indian business giants like Ambani ,Adani and others are coming forward, said the High Commissioner.
“But the Indian investors’ response is not enough. They need to be more vigorous,” he said.
Syed Muazzem said despite common economic advantages, two nations have evolved in different industry sectors. “While garments and agricultural products are exported from Bangladesh, Indian exports include automotives and pharmaceuticals.”
This can be overcome if Indian investors set up a series of “buy-back” projects in Bangladesh and re-export to India and some other neighbouring countries, he said.
The High Commissioner pointed out that similar equation exists between US-Canada and US-Mexico.
He said India and Bangladesh may delve into joint venture partnership in important sectors such as agro processing, automobiles, ceramics, chemicals, gems and jewellery, light engineering, ICT, hospital and medical equipment, pharmaceuticals, plastics, professional services, tourism, textiles (including home textile).
India has capital and technology, while Bangladesh has one of the best mixes for competitive market, business-friendly environment and competitive cost structure, he said.
The High Commissioner said Dhaka offers a well-educated, highly adaptive and industrious workforce with the lowest labour cost in the region.
The envoy said Bangladesh offers the most liberal FDI regime in South Asia allowing 100 percent foreign equity ownership with unrestricted exit policy, remittance of royalty and repatriation of equity and dividend.