Assam has highest trade potential with Bangladesh

IBCCI secretary general talks about bettering trade relations with NE

Guwahati: Dr S M Abdul Kalam Azad, the Secretary General (SG) of India Bangladesh Chambers of Commerce and Industry (IBCCI), Dhaka Chapter, in an interview with Business Northeast elaborated on how the trade relations between the countries, with a focus on the North East, can grow. He also spoke about how entrepreneurs from Bangladesh can get a boost from India for their growth. 

BNE: What is your role in promoting bilateral trade?
SG: Since the inception of the India-Bangladesh Chamber of Commerce and Industry (IBCCI) in 2006, it has played a crucial role in promoting bilateral trade and economic relations between Bangladesh and India. The chamber serves as a platform for businesses, entrepreneurs, and investors from both countries to interact, collaborate and explore new trade opportunities. 

The key roles and functions of the Secretary General are many. IBCCI facilitates and enhances the trade of goods and services between India and Bangladesh. The Secretary General, on behalf of the chamber, organises events, conferences and trade fairs that bring together businesses and stakeholders from both countries. 

The chamber serves as a repository of information on trade regulations, investment opportunities, market trends and industry updates in both countries. As a result, the Secretary General consults and conducts research to provide valuable market intelligence to businesses interested in cross-border trade. He acts as a bridge between the parties by providing a platform for dialogue. 

BNE: What do you think are the challenges and opportunities of trade between Indo Bangladesh?
SG: Despite having a duty-free and quota-free trade agreement, non-tariff barriers, such as complex regulations, bureaucratic hurdles, and customs-related issues, can hinder the smooth flow of goods and services between the two countries. Inadequate infrastructure, especially at border points, can lead to delays and increased transportation costs. A significant portion of trade between the two countries takes place through informal channels, which can make it difficult to accurately measure the trade volume and may lead to revenue losses for governments. 

On the other hand, both India and Bangladesh have large populations, which provide a substantial market for each other’s goods and services. Collaborative efforts can lead to synergies and mutual benefits in areas such as textiles, information technology, agriculture, and pharmaceuticals. Improved regional connectivity initiatives, such as better road and rail links, can facilitate easier trade and investment between the two countries. 

BNE: What is your opinion on the scope of trade and commerce between Bangladesh and the North East?
SG: The trade and commerce potential between Bangladesh and Northeast India is significant and holds promising opportunities for both regions. Northeast India, consisting of eight states, shares a close geographical proximity with Bangladesh, making it a natural trading partner. This geographical advantage allows for faster and more cost-effective trade routes between the two regions. Bangladesh is known for its garment and textile industry, while Northeast India possesses rich natural resources, agricultural products, and potential in sectors like tourism, horticulture, and handicrafts.

Both Bangladesh and India have been investing in improving cross-border infrastructure and connectivity. Initiatives such as the Agartala-Akhaura rail link and Integrated Check Posts have been established to enhance trade facilitation. Border haats (markets) have been established at various points along the India-Bangladesh border to promote local trade and the exchange of goods. 

BNE: What are the products of the North East that can be utilised in Bangladesh?
SG: Some of the key products from the North East that can be exported to Bangladesh are bamboo chips and pulp that have a huge market in Bangladesh for its paper mills. Products like oranges, pineapples, ginger, turmeric, and various types of vegetables have the potential for export. The region is known for its horticulture products, including flowers, orchids, and spices, which can find a market in Bangladesh. Bangladeshi consumers have a preference for tea, and imports from Assam can cater to this demand. Items like traditional textiles, bamboo products, and crafts can be exported to Bangladesh, which shares cultural similarities and appreciates such goods. The region has a wealth of medicinal and aromatic plants with significant export potential to Bangladesh’s pharmaceutical and cosmetic industries. 

Northeast India has the potential to export surplus electricity to Bangladesh, benefiting both regions. Some states in the region have mineral resources that could be of interest to Bangladesh’s manufacturing industries.

BNE: Among the northeastern states, which state has the highest potential to trade with Bangladesh?
SG: Among the northeastern states of India, Assam has the highest potential to trade with Bangladesh. Assam is strategically located and shares the longest border with Bangladesh among all the northeastern states. This geographical proximity offers several advantages for trade and economic cooperation between the two regions. Here are some reasons why Assam has significant potential for trade with Bangladesh:

BNE: How are the problems like the immigration issue are hampering the prospects of India-Bangladesh bilateral trade and commerce?
SG: The immigration issue in the Northeast from Bangladesh can have several implications for India-Bangladesh bilateral trade and commerce. It is essential to distinguish between immigration and trade-related matters. Such concerns may lead to increased border security measures, stringent checks, and surveillance, potentially causing delays and disruptions in cross-border trade activities. Immigration-related challenges can have a more significant impact on the economy of the border regions. 

BNE: What kind of help do Bangladeshi entrepreneurs need from the Northeast and India as a whole?
SG: Indian markets, including those in Northeast India, offer significant opportunities for Bangladeshi entrepreneurs to expand their customer base. Streamlining trade procedures, reducing non-tariff barriers, and enhancing border infrastructure can make it easier for Bangladeshi entrepreneurs to import and export goods and services between Bangladesh and India, including Northeast India. Information and assistance regarding potential investment opportunities in Northeast India can attract Bangladeshi entrepreneurs to explore collaboration and joint ventures with Indian companies. Other areas may include skill development, access to finance, technology transfer, export promotion, cross-border collaboration, policy support, etc. 

BNE: Tell us about the latest initiatives taken by IBCCI to build a better bond between India and Bangladesh.
SG: Organising trade and business conferences that bring together stakeholders from both India and Bangladesh to discuss market opportunities, investment prospects and challenges in the bilateral trade relationship. Facilitating business delegations and exchange programmes can encourage interactions between entrepreneurs, investors, and industry representatives

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