Dhaka needs to grant New Delhi transit facilities and agree with the large scale investment proposals by the Indian companies to reduce massive trade gap and up bilateral trade between the two countries to $20 billion in five years, said the visiting Indian State Minister for Commerce Joyram Ramesh on July 22. Ramesh also asked Bangladesh to allow India’s access to the New Mooring Terminal, open up the Demagiri-Thegamukh land route and hold equity share in a 1,110 MW power station, which is being set up in Agartala.

The Indian state minister said transit is a political ‘hot potato’ in Bangladesh. “But I want to make a point that transit is not only a concern for India but also for Bangladesh,” Ramesh felt. “Because Bangladesh could be a major supplier to the north and eastern parts of India using the transit facility,” he explained. Ramesh said there is no conspiracy in India to keep Bangladesh an underdeveloped country forever. “And therefore, we want to help Bangladesh to grow its trade volume.” The visiting state minister made the comments to the reporters after meeting separately with President Iajuddin Ahmed, Foreign Adviser Iftekhar A Ahmed and local businessmen.

He also said New Delhi is committed to intensify bilateral economic ties with Dhaka and will not interfere in Bangladesh’s internal politics. India believes that Bangladesh will not allow its land for terrorism activities against India, the Indian state minister said. Expressing his dissatisfaction over Bangladesh’s export to India, Ramesh said the amount of trade between the two countries could reach $20 billion by next five years if it allows to implement two pending investment proposals by Indian giants Tata and Mittal groups.

Ramesh also laid stress on the Indian policy to increase trade between the countries and said, “As a larger economy of the region, India must be big hearted to Bangladesh.” The Indian state minister informed that the two countries sign a memorandum of understanding on July 22 to import 8 million pieces of readymade garment from Bangladesh. He said under the deal Bangladeshi exporters could export 8 million pieces of readymade garments to India a year without any port or yarn restriction. Earlier, India compelled Bangladeshi exporters to use Indian yarn to make a significant portion of exportable RMG goods to India and asked to export through a particular port. The Indian state minister said he placed a five-point request to the high-ups of the caretaker government.

India is setting up a 1,110MW power plant near Agartala, which could also supply power to some regions in Bangladesh that are facing electricity crisis. When asked if India worries about Bangladesh’s growing trade with China, Ramesh replied that India does not think China as a competitor. India always welcomes Bangladesh’s trade success with any country. “But Bangladesh has to keep both the giant elephants–India and China– happy and it could be a chance for Bangladesh to become an economic hub of the region,” Ramesh said. However, he said India wants pure Bangladeshi products. It does not want Chinese or Vietnamese products come through Bangladesh.

Mentioning his meet with Bangladesh Rifles (BDR) director general, Ramesh said India would consider exporting 50,000 tonnes rice and 1,000 tonnes milk powder to Bangladesh soon.