The head of the top business body in Bangladesh has said that in the long run, trade with India would remain intact despite the recent turmoil that saw a fall in the trade. Md. Hafizur Rahman, Administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), talked about the recent situation.
Mr Rahman said Bangladesh imports annually about USD 14 billion from India, which are mainly raw materials. He pointed out that though there was a temporary decline, this is not a long-term issue. “After the government change in Bangladesh, we saw a drop in trade. But I believe this is a short-term situation,” he said.
Recently, Bangladesh faced difficulties such as a drop in raw material imports. High exchange rates and a shortage of foreign currency reserves reduced total imports by 20 percent. “I believe we will overcome this situation soon,” says Rahman optimistically.
He has, however, given signs of good trade relations between the two neighbors despite the political uncertainty. “This decline is below than that the general decline of import,” Rahman added, pointing out a 5 percent decline in trade with India. “This shows that our trade relations are strong, even amid challenges.”
The FBCCI recently appointed Rahman as its administrator after it dissolved the previous elected committee. He plans to run the organization until a new committee is formed. “India remains one of the key trading partners with us. We import essential items such as cotton, rice, and machinery from India. This relationship is going to grow stronger,” he said.
Mr. Rahman pointed to the huge export-import gap with Bangladesh exporting approximately USD 2 billion to India while its imports from India are at USD 14 billion. He was concerned about this gap and the need for further diversified exports. “We have a few products to export, while India has a long list of items to offer,” he said.
Trade was hurt by the recent political turbulence, with protests forcing the ouster of Prime Minister Sheikh Hasina. Rahman said businesses needed a “stable banking and transportation system”. “The business community needs undisturbed operations, especially in banking and transportation,” he said.
The visa restrictions imposed by India on grounds of security also affected the trade. Rahman argued that these should be removed to normalize trade and tourism across the border. “When the situation stabilizes, trade will flourish again,” he concluded.
Rahman said there is considerable scope for raising India-Bangladesh trade, as also among the SAARC countries. He urged reviving SAFTA to give a fillip to regional. “We need to work together to enhance trade within the SAARC region,” he said.
ANI
