FDI from Bangladesh may flow into India

KOLKATA: The Union commerce ministry will soon submit a proposal to the Department of Industrial Policy and Promotion (DIPP) to consider allowing FDI from Bangladesh into India, said Jairam Ramesh, the minister of state for commerce.

Currently, FDI from Pakistan and Bangladesh is put under the negative list.

It is not permitted in India for strategic reasons including concerns on national security. Addressing reporters at the second meeting of Indo-Bangladesh task force, the minister said with considerable improvement in the Indo-Bangla relations, driven by ever-growing bilateral trade, the time has come for India to reciprocate Bangladesh’s gesture by allowing Indian investment into its soil.

The task force has been constituted by the Ficci and Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) to foster economic cooperation between the two nations. The first meeting of the task force was held on June 4, ’06, in Dhaka. Mr Ramesh said, once India allows FDI from Bangla, it will step up Indian investment into that country.

This will propel economic development of that country, which may strengthen the voices of its moderate forces, who are keen on a thriving relation between the two countries. “I, therefore, would personally take up the issue with DIPP and other concerned ministries to allow FDI from Bangla subject to safe-guard measures.

However, the matter of lifting the ban on FDI from Pakistan will be considered on a case-by-case basis,” added Mr Ramesh. Responding to the task force’s plea on allowing duty-free access of some 16 Bangladeshi products to India, the minister advised the chambers to have a look at the list of 4,200 Bangladeshi items, on which India will waive import duty by ’08.