Bangladesh, India companies strike deals worth $9b

[Homo Sapiens]

http://www.thedailystar.net/business/bangladesh-india-companies-strike-13-deals-1389136
07:08 PM, April 10, 2017 / LAST MODIFIED: 07:33 PM, April 10, 2017
Bangladesh, India companies strike deals worth $9b

13 MoUs, agreements signed in New Delhi

Leading companies from India and Bangladesh on April 10, 2017 sign 13 MoUs and agreements in the presence of Bangladesh Prime Minister Sheikh Hasina at a meeting of India-Bangladesh Business Forum in New Delhi. Photo: PMO
Star Online Report


Leading companies from India and Bangladesh today signed 13 MoUs and agreements for electricity, oil and gas projects, including the controversial Rampal thermal power plant, worth over $9 billion aimed at deepening the bilateral economic partnership.

The deals were signed in the presence of Bangladesh Prime Minister Sheikh Hasina at a meeting of India-Bangladesh Business Forum in New Delhi.

The deals include: a facility agreement between Bangladesh-India Friendship Power Company (BIFPCL) and Exim Bank of India for debt financing for construction of 1,320MW Maitree Power Project in Rampal of Bangladesh at a cost of $1.6 billion.

The location of the thermal project near the ecologically-sensitive Sundarbans area has triggered an outcry among environmentalists in Bangladesh.

The MoUs include an implementation and power purchase agreement between Reliance Power and the Ministry of Power, Energy and Mineral Resources for the first phase (718MW) of the 3,000MW power project at Meghnaghat, entailing $1 billion (out of a total proposed investment of $3 billion).

The development came following meetings with the high-powered Bangladeshi business delegation accompanying Hasina on her four-day visit to India.

The Bangladesh delegation comprised of businessmen representing sectors such as automobiles, cement, insurance & banking, ready-made garments, shipping, IT/ITeS, food and beverages, jute, power, renewable energy, real estate, electronic and print media, packaging, poultry, education, health and pharma, chemicals and telecommunication.

 

[Ryuzaki]

India and BD should sign FTA as soon as possible....BD can export textiles,jute etc and India can export agricultural produce,vehicles,pharma drugs

 

[Nabil365]

India and BD should sign FTA as soon as possible....BD can export textiles,jute etc and India can export agricultural produce,vehicles,pharma drugs

But agricultural produce and pharma in Bangladesh is cheaper compared to India. If Indian companies do enter, more like a suicide mission for them.

 

[Rajaraja Chola]

But agricultural produce and pharma in Bangladesh is cheaper compared to India. If Indian companies do enter, more like a suicide mission for them.

We are the world's largest producer of Generic drugs. I am not sure how it is cheap in BD than in India? Moreover FTA means getting free duties favourable to both the countries. Its not a one way street. And trust me. Signing an FTA with India is lot better than with China.

 

[TopCat]

9billion.. ya right!!!

 

[Mage]

India and BD should sign FTA as soon as possible....BD can export textiles,jute etc and India can export agricultural produce,vehicles,pharma drugs

Well pharmaceutical products made in Bangladesh are able to meet more than 90% of current demand of Bangladesh. Plus the pharmaceutical industry is improving and exporting elsewhere as well. I don't see Indian companies making much profit there. It's different about vehicles though. Indian vehicles already have a good market in BD. They will be profited hugely.

 

[Ryuzaki]

9billion.. ya right!!!

In power,oil,gas sector,9 billion USD is a normal amount

 

[TopCat]

Well pharmaceutical products made in Bangladesh are able to meet more than 90% of current demand of Bangladesh. Plus the pharmaceutical industry is improving and exporting elsewhere as well. I don't see Indian companies making much profit there. It's different about vehicles though. Indian vehicles already have a good market in BD. They will be profited hugely.

Bangladesh does not permit compound medicine... so no luck for indian export here.

 

[utraash]

Good to see BDesi are also interested in deepening the ties....

 

[Gandh brandi]

Bangladesh does not permit compound medicine... so no luck for indian export here.

Can you elaborate?

 

[Species]

9billion.. ya right!!!

All of them are MoUs. Wonder even $1billion would be implemented or not!

 

[Bilal9]

We are the world's largest producer of Generic drugs. I am not sure how it is cheap in BD than in India? Moreover FTA means getting free duties favourable to both the countries. Its not a one way street. And trust me. Signing an FTA with India is lot better than with China.

Bangladesh and India are competitors in Generic Drug export. Generic drugs are cheaper exports from Bangladesh.

Bangladesh does import inputs (basic ingredients) for producing these drugs from India sometimes.

 

[Rajaraja Chola]

Bangladesh and India are competitors in Generic Drug export. Generic drugs are cheaper exports from Bangladesh.

Bangladesh does import inputs (basic ingredients) for producing these drugs from India sometimes.

Nope. Basic ingredients are imported from China. BD Pharma hasnt developed to the level Indian companies have developed. But again if you want free access for textiles BD has to reciprocate in return for an item that India is a leader in. Infact India is a larger market for BD, and hence advantage is for your companies.

 

[damiendehorn]

Nope. Basic ingredients are imported from China. BD Pharma hasnt developed to the level Indian companies have developed. But again if you want free access for textiles BD has to reciprocate in return for an item that India is a leader in. Infact India is a larger market for BD, and hence advantage is for your companies.

There will be no FTA with india for the forseeable future. margins are very very low in textile exports to india, we still have a lot more growth prospects from USA, EU, ASEAN and even China now (this is from some one who's family own a large knit factory).

RMG exports are expected to double from under $24bn to over $50bn in the next 3-4 years. Exports of leather goods(shoes, furniture, etc) are seeing fast growth, as has light enginering.....

FTA will be only benificial to the indian economy, far more then to Bangladesh....so no there will be no FTA.

 

[Bilal9]

Nope. Basic ingredients are imported from China. BD Pharma hasnt developed to the level Indian companies have developed.

What specifically are you referring to - in terms of 'development' (or lack thereof) for Bangladesh vs. Indian pharma? I believe we may have a gap in information here....

But again if you want free access for textiles BD has to reciprocate in return for an item that India is a leader in.

I don't think Bangladesh wants 'free' trade access in India of any sort, for any product. What it wants (to my understanding) is 'fair access', a level playing field, free of non-tariff trade barriers and political tampering of trade issues, tilted in favor of non-competitive local Indian companies. To retaliate in trade, we should be playing the same game in Bangladesh (and tilting trade rules ad-hoc to favor our local companies), but we don't. And I have no idea why....

In fact India is a larger market for BD, and hence advantage is for your companies.

We have no advantage in Indian market. The promise of Indian market has been more or less unfruitful for Bangladesh companies and suppliers as evidenced in the last four decades. Trade barriers of various kinds in India took care of that.

Well pharmaceutical products made in Bangladesh are able to meet more than 90% of current demand of Bangladesh. Plus the pharmaceutical industry is improving and exporting elsewhere as well. I don't see Indian companies making much profit there. It's different about vehicles though. Indian vehicles already have a good market in BD. They will be profited hugely.

Let's correct that. Indian commercial vehicles (lower end ones) have a good market in Bangladesh. That is because they are dirt-cheap and offer lower transport costs (they can be driven to our borders here fairly cheaply via Indian road network) and the unsophisticated needs of the Bangladesh lower end commercial vehicle market are no different than the rest of India. However higher end commercial vehicles (luxury buses and six axle trucks on up, as well as construction trucks), are almost all Japanese brands (Hino, Isuzu, Mitsubishi etc.) or more recently - mostly Chinese.