Dhaka, Sep.6 (ANI): Indian officials accompanying the Prime Minister, Dr. Manmohan Singh, on his two-day official visit to Bangladesh, the first by an Indian head of government in twelve years, said Tuesday that the relationship between the two countries was now more practical, and added that it was imperative for both to develop habits of cooperation.
Speaking on condition of anonymity, the sources also said that India was not seeing the Prime Minister's visit to Bangladesh as an event to establish competition with China.
"We are not here to compete with the Chinese. We have our own interests. We should be in Bangladesh not because others are there, but because we have interests in having good ties with them," said the sources.
"Our interest in improving ties with Bangladesh is not a zero sum game with China. We are keen to further relations for bilateral benefit," they further said.
According to the sources, India wants a lasting, stable relationship with Bangladesh, an emerging economy and big market for Indian goods, no matter who rules in Dhaka.
The two sides are expected to sign agreements on an exchange of disputed territory, dating back to the 1947 partition of British India, as well as pacts on trade and cooperation in various areas.
Bilateral trade between the two nations has grown steadily but remains heavily in India's favour.
The widening gap in trade is causing concern in Bangladesh where businesses are asking for the removal of both tariff and non-tariff barriers.
Bangladeshi economists and analysts say a pact on the sharing of waters from the Teesta and more than 50 other common rivers is the most important for downstream, agrarian Bangladesh.
Cross-border trade between the two countries is just four billion dollars, and observers have been quoted by the media as saying that New Delhi needs to genuinely improve trade access for Dhaka, including for textiles and readymade garments.
India's offer of duty-free annual imports of ready-made garments, now reportedly raised to 10 million pieces, is much too low, given that the market size for such garments is estimated at 25 billion dollars.
It is felt that India must encourage imports of Bangladeshi readymades.
According to a report in the Economic Times, there is also the need to streamline transport and logistics linkages between both countries.
The report says that the proposed linking of Indian and Bangladesh railways by completing just 13-km stretch between Agartala in Tripura and Akhaura across the border, the key to connecting the north-east with the rest of India, should not be delayed further.
The train link, it says would provide connectivity from the north-east to the Chittagong port.
End-to-end rail and truck connectivity will boost trade and friendship. The sharing of river waters must be taken up with clarity and transparent negotiations with all stakeholders.
Bilateral relations between China and Bangladesh were established in 1975-76.
Bangladesh is third largest trade partner of China in South Asia, but bilateral trade is still highly tilted in favor of Beijing.
China has been taking steps to bolster its economic aid to Bangladesh and to address concerns of trade imbalance.
In 2006-7, China removed tariff barriers on 84 commodities imported from Bangladesh under the auspices of the Asia-Pacific Free Trade Agreement (AFTA). It has also been working to reduce tariffs over the trade of jute and textiles, which are Bangladesh's main domestic products.
China has also offered to construct nuclear power plants in Bangladesh to help meet the country's growing energy needs,
China mainly imports raw materials from Bangladesh like leather, cotton textiles and fish, etc. Its major exports to Bangladesh include textiles, machinery and electronic products, cement, fertilizer, tyres, raw silk and maize.
Both Bangladesh and China have also been sending official delegations to each other's countries to look for ways to enhance bilateral engagement in spheres of mutual interest.
Bangladesh's relationship with China has affected India in one way or another and Prime Minister Manmohan Singh's visit to Dhaka could also focus on ways to address this. By Smita Prakash (ANI)
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