In all the flurry of Indo-Bangladesh investments and visits, Kolkata is hardly there.
Despite the overlapping historic, geographic and cultural ties, West Bengal has been short-shrifted in the frenetic exchange of Indo-Bangla investment delegations since Bangladesh Prime Minister Hasina’s visit earlier this year.
The India-Bangladesh Chamber of Commerce and Industry (IBCCI), patronised by the Indian High Commission, has not led any investment delegations to Kolkata. However, Delhi, Chennai and Tripura found favour.
West Bengal or its companies hardly have a presence in the list of investment proposals that IBCCI president Abdul Matlub Ahmad rattles off. Of the companies — SRF, Arvind Mills, Venky’s, NTPC, Zensar — looking to foray into Bangladesh, there is just one company from Kolkata so far, Amrit Poultry and Feeds. No company from Bangladesh has finalised any plans for Bengal.
Kolkata-based Bengal National Chamber of Commerce & Industry did lead a delegation, but an investment decision is still a far way off, if at all.
“We have not led an investment delegation to Kolkata, but West Bengal is important. It happens to be our most important trading partner,” assures Jahangir Bin Alam, secretary, IBCCI.
During April-September 2009, exports from West Bengal to Bangladesh were Rs 2,597 crore, roughly 20 per cent of total exports from the state. Trade between West Bengal and Bangladesh is mainly through the land custom stations in West Bengal: Petrapole, Mahedipur, Hili (West), Changrabandha, Ghajadanga, Ranaghat and TT Shed Khidirpur.
Hurdles
Bangladesh, however, would want rationalisation of taxes. “The local taxes should be rationalised. But the state government doesn’t want to because they earn revenues,” said Mustafizue Rahman of the Centre for Policy Dialogue Bangladesh.
So, what’s impeding the flow of investments? “The priority areas for investment in Bangladesh right now are infrastructure and power. None of the companies from West Bengal in the sectors are looking outside the state; it’s not just an issue with Bangladesh. There is significant trade between West Bengal and Bangladesh, but investments would depend on the appetite of local businessmen,” explains Rajeev Singh, Director General, Indian Chamber of Commerce.
Is the current political uncertainty in West Bengal keeping investors from Bangladesh away, as it is from elsewhere within the country?
Quite the contrary. Bangladesh is hoping that a possible change of government next year might augur well for West Bengal and the former East Bengal.
“The West Bengal government will then align with the policies at the Centre,” Rahman said. Indeed.
As Matlub said, “Efforts over the past 20 years in Indo-Bangla business relations never materialised into anything. But in the last four-five years, we could see a change in the Indian government.”
