Accept deferred repayments to benefit equally nations: FBCCI to India
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The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the country's apex trade body, on Mon demanded that India accept deferred payments of up to 240 times for more value addition and jobs in the bilateral supply chain.
India is currently the second largest import resource for Bangladesh after China. Indian businesses supply most the industrial recycleables needed by Bangladesh with an total annual export value around $8 billion through formal channels.
Western retailers and brands are actually deferring payments to native manufacturers and exporters as a result of Covid-19 crisis therefore, allowing the same for the latter while maintaining healthier supply chains may stimulate businesses, protect existing jobs and create innovative kinds for both nations.
Task creation and investments through Bangladesh-India joint ventures are is most beneficial way to advantage both nations and stimulate the market amidst the coronavirus fallout, said FBCCI President Sheikh Fazle Fahim.
Fahim made these comments while addressing a webinar themed, 'India-Bangladesh Trade and Investment: Stakeholders Interaction', jointly organised by the Federation of Indian Chambers of Commerce and Industries (FICCI) and the Indian high commission in Bangladesh.
Currently, bilateral trade with India stands at about $9 billion.
"And as a result of Covid-19 realities…joint investments that are part of the worthiness chain for services and products, of which raw materials will be from India, finished merchandise are in Bangladesh, found in production in Bangladesh and re-exported to India and beyond, is a strategy that I think both nations would reap the benefits of," Fahim said.
Exploring options in light engineering, a benefit chain initiative with recycleables from India and development in Bangladesh, will be another complimentary initiative in a long list of bilateral cooperation, he added.
Revising the provision upon deferred payments will assist in raising exports of backward linkage items via India to Bangladesh and exports to India and outside of through bilateral benefit chain initiatives, targeted towards global markets, explained the FBCCI President.
Fahim also requested Indian stakeholders to consider extending deferred letter of credit payment facilities from Indian banks for 240 times.
The expanded deferred payments should increase procurement volumes for enterprises presently engaged in varied countries other than India, the FBCCI president also said. High import obligations, especially on passenger and commercial vehicles, come in the way of accelerating bilateral trade, brought up Manoj Chugh, president (group open public affairs) of Mahindra & Mahindra, according to an FBCCI statement yesterday.
"Suitable retail finance should be enabled for such items in the Bangladesh industry," Chug said.
On his stage on diversification of routes to help ease the movements of goods to market investment and trade, Fahim said they had a need to think a little beyond the field as the conventions have already been such when it comes to cost effectiveness.
"Waterways is the foremost option. Then there may be the railway," he said.
"There are pushes towards exploring and as quickly as possible executing these routes regarding passenger cars or any sort of goods and products and services that involves Bangladesh from India or the merchandise that goes to India," the statement reading.
Riva Ganguly Das, Indian great commissioner to Bangladesh, echoed exactly like keynote speaker.
"Indian railway and Bangladesh railway will work together which ultimately shows how committed they happen to be to provide clean logistics," she said.
India is focused on take on regional cooperation forward, she said while praising several other speakers' strategies on remote deduction of duty on travellers and commercial vehicles.
Dilip Chenoy, secretary general of the FICCI, and Manish Singhal, FICCI deputy secretary basic, presided over the programme.
Abdul Matlub Ahmad, president of the India-Bangladesh Chamber of Commerce and Sector, Venkat Nageswar, deputy managing director of the Condition Bank of India, and Ashok Anantharaman, director (foreign) of CNH International, also participated in the webinar.
Source: https://www.thedailystar.net
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