Bangladesh yesterday signed a deal with India to develop two economic zones to bring in more Indian investments and reduce the rising trade imbalance with the neighbour.The industrial enclaves will be set up in Mongla, the country’s second seaport, and Bheramara, Kushtia in five years, Paban Chowdhury, executive chairman of Bangladesh Economic Zones Authority, told The Daily Star by phone.He shared the development after signing an agreement with Indian Foreign Secretary Subrahmanyam Jaishankar, marking the two-day visit of Indian Prime Minister Narendra Modi in Dhaka.The Indian Economic Zone will promote Indian investments in Bangladesh, said Modi in his written speech.India becomes the third country after Japan and China to have shown interest in developing economic zones in Bangladesh. Once set up, they will create jobs and give a boost to the economy as it aims to break the 6 percent growth trap.Chowdhury said India will develop the economic zone near the government-sponsored one in Mongla, which is now under construction.India wants over 200 acres of land in Mongla and 477 acres at Bheramara to establish the zones, he added.The zones will be developed with funds obtained from the $2 billion line of credit from India, according to the BEZA executive chairman. “As there will be no uncertainty regarding funds, we expect the zones can be developed in three years.”The government will provide land to establish the zones, which can be set up by leasing it out or through equity participation, he said, adding the details will be finalised based on discussion.“I will prefer equity participation of BEZA in the management of the zones. However, I will have no objection if Indian developers want to develop the zones themselves.”Chowdhury expects the majority of investors in the two economic zones to be from India.Bilateral trade between Bangladesh and India currently stands upwards of $6 billion, with the balance heavily in favour of New Delhi.The government has so far approved 30 public and private economic zones in different parts of the country. Of them, the implementation of Sirajganj, Mongla, Mirsarai, Anwara and Srihatta economic zones is progressing well.
Source: https://www.thedailystar.net/business/two-economic-zones-india-93220
