India, which is currently negotiating about half-a-dozen free trade agreements, is set to sign the first such bilateral pact with the United Arab Emirates (UAE) during a virtual summit Friday, with adequate protections for domestic industry.

 

The comprehensive economic partnership agreement (CEPA) with the UAE will have clauses protecting the interests of domestic industries and providing them a gateway to markets in West Asia and Africa, three people aware of the matter said.

 

'Negotiations for CEPA were launched in September 2021 and have been completed,' the external affairs ministry said in a statement announcing the virtual summit between Prime Minister Narendra Modi and Abu Dhabi’s Crown Prince, Sheikh Mohamed bin Zayed al Nahyan. 'The agreement will take India-UAE economic and commercial engagement to the next level. [The] UAE is India’s third largest trade partner, and bilateral trade and investment ties are expected to see significant enhancements,' the ministry added.

 

India is negotiating free trade agreements (FTAs) with the UK, Australia, European Union (EU), Canada and Israel, and all of them have negative lists of items where limited or no tariff concessions will be granted. This will be done to protect the interests of domestic industry, the three people said, requesting anonymity.

 

The CEPA with the UAE will be the second major trade deal after the India-Mauritius comprehensive economic cooperation and partnership agreement (CECPA) signed in February 2021, one of the people said. 'The India-UAE agreement is of strategic significance for both partners. We see a potential of $100 billion in bilateral trade in five years. It is a win-win for both,' he added. During the virtual summit, Modi and Sheikh Mohamed bin Zayed are expected to lay out their vision for the relations between the two sides at a time when India is celebrating 75 years of independence and the UAE the 50th anniversary of its foundation. The leaders will also discuss bilateral cooperation and regional and international issues, the external affairs ministry said.

 

Both countries collaborated closely during the pandemic in the critical areas of healthcare and food security.

 

Ajay Sahai, director general and CEO of the Federation of Indian Export Organisations (FIEO), said: 'The UAE is India’s second largest export destination, next only to the US and the growth of our exports to the UAE has been very encouraging. In the first nine months of the current financial year, our exports to the UAE have already crossed $25 billion.'

 

As per official data, the trade balance is, however, tilted in favour of the UAE, with imports (India buys a lot of crude oil from the UAE) surpassing the $43-billion mark during January-December 2021.

 

Sahai said the CEPA will facilitate greater access for Indian exports to other Gulf Cooperation Council markets as they follow the same technical standards as the UAE. 'The UAE is also a re-distribution centre and a financial hub. Much of the exports to Africa are routed through Dubai,' he said.

India will pitch to become the preferred sourcing partner for the global food processing industry during the fortnight at EXPO2020 Dubai and host various seminars and conferences to deliberate on ways to explore international collaborations and further strengthen its export potential.

 

Additional Secretary, Ministry of Agriculture & Farmers Welfare, Dr.Abhilaksh Likhi, will inaugurate the ‘Food, Agriculture and Livelihood’ fortnight at the India Pavilion in EXPO2020 Dubai on February 17th, 2022. The fortnight will showcase India’s prowess in sectors like food processing, horticulture, dairy, fisheries, and organic farming and the vast investment opportunities that it offers.

 

As part of the key theme - ‘Millets’, the fortnight will witness the millets food festival, the launch of Millets Book, and various seminars focusing on its health and nutritional benefits. It is noteworthy here that the UN General Assembly has recently adopted the resolution, sponsored by India and supported by more than 70 countries, declaring 2023 as the ‘International Year of Millets’.

 

Agriculture, with its allied sectors, is the largest livelihood provider in the country. The sector contributes a significant share of around 21% to the overall Gross Domestic Product (GDP). With total exports of agricultural and allied products at US$ 41.25 billion in FY21, India is among the 15 leading exporters of agricultural products in the world.

 

To harness the untapped potential of this sector, the Government has allowed 100% FDI in the marketing of food products and food product e-commerce under the automatic route. An incentive outlay of Rs 10,900 crore (US$ 1,484 million) for the food processing sector has also been approved under the PLI scheme. In addition, the comprehensive Agriculture Export Policy has been introduced to increase India’s agricultural export to US$ 60 billion by 2021-22 and US$ 100 billion in the next few years.

 

The sector is set to witness increased investment in agricultural infrastructure such as irrigation facilities, warehousing, and cold storage, with global consumption reaching the pre-pandemic level.

 

The fortnight will also see participation of several senior government officials from India who will be present during the various sessions.

 

The ‘Food, Agriculture and Livelihood’ fortnight will conclude on March 2nd.

India and Germany on Wednesday signed a work plan for cooperation to strengthen quality infrastructure, reduce technical barriers to trade, enhance product safety and strengthen consumer protection.

 

The work plan 2022 was signed during the virtually held 8th annual meeting of the Indo-German Working Group on Quality Infrastructure, led by the Indian Ministry for Consumer Affairs, Food and Public Distribution, and the German Federal Ministry for Economic Affairs and Energy.

 

Consumer Affairs Secretary Rohit Kumar Singh and Deniela Bronstrup, Director General, Digital and Innovation Policy at the German Federal Ministry for Economic Affairs and Climate Action (BMWK) were present in the meeting.

 

'A Work Plan for the Year 2022 was agreed upon and signed by both sides…,' an official statement said.

 

The areas identified for collaboration include mobility, energy, circular economy, smart farming/ agriculture, medical devices, digitalisation (artificial intelligence, Industry 4.0 and other new technology areas), machinery safety, medical devices and equipment and market surveillance.

 

Speaking in the meeting, India’s consumer affairs secretary underscored the importance of a well-established and robust quality infrastructure which consists of standardisation, technical regulations and market surveillance for the success of the government’s initiative to transform India into a global manufacturing hub.

 

Stating that Germany is an important and trusted partner for India, the secretary expressed hope that the Work Plan 2022 signed virtually during the meeting would pave the way forward for collaboration towards well functioning and resilient systems of quality infrastructures.

 

He urged involvement of all the relevant stakeholders, such as different ministries, standardisation bodies and industry to learn from each other’s approaches on different aspects of quality infrastructure.

 

Germany’s Bronstrup said despite the challenging period, both sides continued cooperation under the framework of the Working Group.

 

'This is a great sign of strong relations between Germany and India and that both sides can draw benefits from exchange of information and expertise on issues of mutual interest to support bilateral trade,' he said.

 

The German side shared their initiatives at the International Telecommunication Union (ITU) and requested support for the German candidate for the position of Director Standards at ITU.

 

A publication — ‘United in Quality and Safety’ — was released providing information about the quality infrastructure in Germany and the European Union.

 

Outcome of the Global Quality Infrastructure Index (GQII) study conducted by the German side was also shared.

 

As per the GQII report, India is placed at seventh position on standardisation aspect, ninth for accreditation activities and 19th for metrology related activities.

 

India scored 95.6 out of 100 and is ranked at 10th place in the world for overall quality infrastructure environment in the country, the statement said.

 

This was followed by a panel discussion on ‘Digitalization and sustainability: key factors for an effective and modern Quality Infrastructure’ and a session on ‘Focus areas for cooperation within the Indo-German Working Group in 2022’.

 

The Working Group meets annually since 2013, and identifies areas of cooperation to support and strengthen quality infrastructure taking into account needs and requirements of relevant stakeholders from diverse technology areas so as to support bilateral trade.

The Second Advance Estimates of production of major crops for the year 2021-22 have been released by the Ministry of Agriculture and Farmers Welfare. Record foodgrains production of 316.06 million tonnes is estimated. Union Minister for Agriculture and Farmers Welfare Shri Narender Singh Tomar said that the new record of foodgrains production in the country is the result of hardwork of farmers, efficient research of scientists and farmer friendly policies of the Government.

 

As per 2ndAdvance Estimates for 2021-22, total Foodgrains production in the country is estimated at record 316.06 million tonnes which is higher by 5.32 million tonnes than the production of foodgrain during 2020-21. Further, the production during 2021-22 is higher by 25.35 million tonnes than the previous five years’ (2016-17 to 2020-21) average production of foodgrains.

 

Total production of Rice during 2021-22is estimated at record 127.93 million tonnes. It is higher by 11.49 million tonnes than the last five years’ average production of 116.44 million tonnes.

 

Production of  Wheat during 2021-22is estimated at record 111.32 million tonnes. It is higher by 7.44 million tonnes than the average wheat production of 103.88 million tonnes.

 

Production of Nutri / Coarse Cereals estimated at 49.86 million tonnes, which is higher by 3.28 million tonnes than the average production.

 

Total Pulses production during 2021-22is estimated at 26.96 million tonnes which is higher by 3.14 million tonnes than the last five years’ average production of 23.82 million tonnes.

 

Total Oilseeds production in the country during 2021-22is estimated at record37.15 million tonnes which is higherby 1.20 million tonnes than the production of 35.95 million tonnes during 2020-21. Further, the production of oilseeds during 2021-22 is higher by 4.46 million tonnes than the average oilseeds production.                                         

 

Total production of Sugarcane in the country during 2021-22is estimated at 414.04 million tonnes which is higher by 40.59million tonnes than the average sugarcane production of 373.46 million tonnes.

 

Production of Cottonis estimated at 34.06 million bales (each of 170 kg) is higherby 1.12 million bales than the average cotton production of 32.95 million bales. Production of Jute & Mesta is estimated at 9.57 million bales (each of 180 kg). 

The apex food authority has issued a direction regarding the declaration of percentage contribution to Recommended Dietary Allowance (RDA) for different age groups on the label of the product.

 

It has clarified that in case of food for specific age group or physiological condition, respective RDAs may be considered for the purpose of labelling.

 

According to the FSSAI, 'It is clarified that in the case of foods which are targeted to a specific age group or physiological condition, respective RDAs may be considered for declaring per serve percentage (%) RDA based on the recommended dietary allowance specified by the Indian Council of Medical Research.'

 

FSSAI, in a statement, has pointed out that it had received representations from the stakeholders regarding declaration of percentage contribution to RDA in case of foods targeted to specific age groups.

 

It is pertinent to mention that the Labelling and Display Regulations 2020, stipulate labelling of nutritional information per 100g or 100ml or per single consumption pack of the product and per serve percentage contribution to RDA calculated on the basis of 2000kcal energy, 67g total fat, 22g saturated fat, 2g trans fat, 50 g added sugar and 2000mg of sodium (5g salt) for average adult per day, on the label.

The ‘Shashwat Bharat Krushi Rath’, a mobile knowledge centre, has been launched in Gwalior, Madhya Pradesh, to create awareness among farmers about globally-acclaimed sustainable, natural and chemical-free farming methods.

 

The mobile centre, inaugurated by Narendra Singh Tomar, Minister for Agriculture and Farmers Welfare, is a replica of the ‘Sustainable Farming and Rural Entrepreneurship Centre’ situated at The Eco Factory Foundation (TEFF), a Maharashtra-based non-profit organisation, near Pune.

 

A statement by TEFF said the centre will also provide information on appropriate market linkages, post-harvest technologies, government schemes. and policies related to agriculture and allied businesses/ start-ups.

 

The centre aims to strengthen farmers’ economy by imparting education on sustainable agriculture practices and to establish sustainable farms.

 

It will demonstrate the worth of sustainable farming from the grassroots level. It will touch on points such as the calendar of the plantation – what crops and when to grow them, how to grow their produce with the available natural resources in their farm, market linkages – how to add value to their business in an efficient way, how to sell their produce in the market, and other aspects.

 

The statement said the idea is to take the mobile centre across the country. ‘Shashwat Bharat Krushi Rath’ will travel across the villages of India in the coming months, it said.

 

Quoting Anand Chordia, founder of TEFF, it said: 'We are certain that this initiative will be a model project that will uplift the social and environmental morale and will bring economic viability to farmers. We wish to benefit the largest number of farmers with the takeaways of Sustainable Farming and Rural Entrepreneurship Centre.'

Jordan’s state grain buyer has issued an international tender to buy 120,000 tonnes of milling wheat sourced from optional origins, European traders said on Wednesday.

 

The deadline for submission of price offers is Feb. 23, with shipment sought in a series of possible combinations in 60,000 tonne consignments.

 

Possible shipment combinations are July 16-31, Aug. 1-15, Aug. 16-31 and Sept. 1-15.

 

The tender continues a period of active grain importing by Jordan.

 

The country has also issued a tender for 120,000 tonnes of animal feed barley, closing on Feb. 22.

 

In its last wheat tender on Feb. 1, Jordan’s state grains buyer purchased 60,000 tonnes after also seeking offers for 120,000 tonnes.

The Indian economy is poised to grow at the quickest pace among the league of large nations on the back of various initiatives taken by the government in Budget 2022-23, said the Finance Ministry's Monthly Economic Review.

 

'The current year may as well end with an economic reset manifest of a post-COVID-19 world...Manufacturing and Construction will be the 'growth drivers', triggered by the PLI schemes and public capex in infrastructure,' the review report said.

 

Agriculture, which continues to see a constant increase in net sown area and crop diversification, will strengthen food buffers while benefiting farmers through generous volumes of procurement at remunerative minimum support prices and income transfers through PM KISAN scheme, it added.

 

Observing that the IMF in its January 2022 update has lowered its global growth estimate for 2022, it said India is yet the only large and major country listed by the IMF whose growth projection has been revised upwards in 2022-23.

 

'In a testimony to the resilience of its people and the farsightedness of its policymaking, the Indian economy that contracted by (-)6.6 per cent in 2020-21 is now projected in 2022-23 to grow the quickest among the league of large nations,' it said.

 

The report said the Budget 2022-23 has strengthened the direction set for India's economy by the previous year's budget.

 

The capex budget, higher by 35.4 per cent over current year's budget estimates and rising to 4.1 per cent of GDP after inclusion of grants-in-aid to states for capital works, will power the seven engines of Gatishakti to reduce the infrastructure gap and facilitate private investment in the country, it said.

 

On the impact of third wave of COVID-19, it said, overall economic activity remained resilient and this is reflected in robust performance of several high frequency indicators like power consumption, PMI manufacturing, exports and e-way bill generation.

 

'Once the uncertainty and anxiety caused by the Covid-19 virus recedes from people's minds, consumption will pick up and the demand revival will then facilitate the private sector stepping in with investments to augment production to meet the rising demand. Barring external shocks – geo-political and economic – this scenario should play out for the Indian economy in 2022-23,' it said.

 

The Budget has targeted a nominal GDP growth of 11.1 per cent in 2022-23 with a GDP deflator of 3.0-3.5 per cent. The implied real growth component of just about 8 per cent is close to the forecast in Economic Survey, 2021-22 as well as 7.8 per cent projected by the Monetary Policy Committee (MPC) of the RBI in its meeting of February 2022.

 

The unchanged repo and reverse repo rate along with the MPCs accommodative stance prioritise growth during these uncertain times and reinforce the investment orientation of the budget.

 

Thailand is likely to offer stiff competition to India in the global rice market this year with its production rebounding from the lows seen in 2019 and 2020. It is India’s only competitor in the parboiled segment of the rice trade. 

 

According to the US Department of Agriculture, Thailand’s rice production during the 2021-22 season is projected at 20.8 million tonnes (mt) compared with 18.8 mt in 2020-21 and 17.65 mt in 2019-20. Production is expected to recover on better availability of water, an issue during 2019 and 2020. 

 

Weaker baht

 

As a result of the rise in production, Thailand’s rice exports this year are likely to be 31 per cent higher at eight mt tonnes against 6.1 mt last year, said USDA’s Foreign Agricultural Service (FAS) post in Bangkok. Higher exports have been forecast mainly in view of a weaker Thai baht. 

 

'Thailand parboiled rice prices have dropped to match with Indian prices. They are $20-30 more than Indian prices,' said Nitin Gupta, Vice-President, Olam Agro India Ltd. 

 

Currently, Indian parboiled rice 5 per cent broken is quoted at $370-376, while Thailand is quoting $395. 'Thailand’s exports are expected to increase to 8 mt from 6-6.5 mt last year,' Gupta said. 

 

70% of exports to Africa

'Some buyers find it better to buy Thai rice as its quality is rated better than Indian variety. Therefore, volume of exports is likely to increase,' said Vidya Sagar VR, Director, Bulk Logix. 

 

The USDA’s Bangkok FAS Post said Thai parboiled rice was more competitive with Indian parboiled rice and some 44 per cent of exports last year went mainly to South Africa, Benin, Cameroon, and Angola. Of this, 70 per cent was parboiled rice.

 

'Higher domestic price for parboiled rice and problems of transportation have created uncertainty over Indian parboiled exports,' said Sagar.

 

The movement of parboiled rice from Chhattisgarh to Kakinada ports in Andhra Pradesh was affected due to a shortage of rail rakes, though the situation has begun to ease. 

 

On the other hand, the Union Government is procuring parboiled rice in Chhattisgarh at nearly ?20 a kg and offering it to traders at ?24, making things difficult for exporters, the Bulk Logix director said.

 

Stiff internal competition

'There will be a strong demand for (Thailand) white and parboiled rice as traders speculate that Thai rice export prices will remain more attractive than Vietnamese and Indian rice,' said the USDA Bangkok FAS Post.

 

'Indian parboiled exports could also face problems since the Prime Minister Garib Kalyan Anna Yojana will end in March and some shippers could find it difficult to source,' said an industry source on the condition of anonymity.

 

However, The Rice Exporters Association President BV Krishna Rao said India will be able to take on Thailand in the global rice market. 'The problem for Thailand is that it has only a handful of exporters shipping rice, whereas there are many in India. Also, rice is exported from many ports in India,' he said.

 

While India enjoys a logistical advantage as it is nearer to African destinations, there is intense competition among exporters in the country. 'Indian exporters are trying to undercut one another,' Rao said. 

 

Disadvantages

According to the TREA president, barring countries such as the Philippines and Malaysia Indian rice is now accepted widely in almost all countries. 'Recently, the Commerce Ministry helped conduct a buyer-seller meet with the Philippines Ambassador, who has agreed to look into our request,' he said.

 

The problem with exporting to the Philippines is that Filipinos prefer 'soft' rice which Vietnam supplies, whereas Indian the Indian variety is 'hard'. 

 

On the other hand, Malaysia prefers Pakistan rice, which is easy to blend with domestically-grown rice. 'Pakistan rice is 6.2 mm in length and can be easily mixed with Malaysia’s 6.4 mm rice. Indian rice length is 5.-7-5.8 mm and thus loses out,' Rao said.

 

The TREA president also expects China to buy more broken rice from India, though there were risks of its prices rising in case of a surge in corn prices. 

 

No 1 ranking to continue

However, the Indian rice trade is unanimous that India’s position as the number one rice exporter will remain unchallenged. 

 

'India’s ability to supply both parboiled and regular white rice at competitive prices will also propel exports to Sub-Saharan Africa where imports are projected to grow,' the USDA said.

 

As of February 11, Indian white rice 25 per cent broken is quoted at $347 a tonne compared with Vietnam’s $389 and Thailand’s $403 (both for 5 per cent broken), the International Grains Council data showed. Rice export prices are 12 per cent lower in India, 24 per cent in Vietnam and 25 per cent Thailand year-on-year. 

 

India’s rice exports have also been helped by higher stocks with the Food Corporation of India, which as of January 1 was 22.15 mt of rice and 47.36 mt of paddy (31.72 mt of rice). 

 

Record rice production of 118.87 mt in 2019-20 and 122.27 mt last season (July-June) has also aided the record shipments.

Bangladesh is one of the  India’s largest trade partner in the region. Trade  Volume is increasing day by day. Even, the bilateral trade between the two countries grew at an unprecedented rate of 14 per cent during the COVID-19 pandemic. Media reports said that despite the COVID-19 pandemic, bilateral trade was at an unprecedented rate of 14 per cent from 9.46 billion US dollars in 2019 to 10.78 billion dollars in 2021.

 

Bangladesh mainly exports products including readymade garments, jute and jute-processed products, leather-processed products, plastic products, fish, soft drinks, copper and edible oil while goods including rice, raw cotton, onion, motor vehicles, boilers, machinery, milk, dairy products, electronic products and iron were imported from India. There is huge potential to increase the trade Volume between Bangladesh and Indian. There is a huge demand of Indian products in Bangladesh. On the other hand, the demand of Bangladeshi products is increasing day be day. Now Indian consumers want to consume Bangladeshi products. Border markets  are the best example to understand it. 

 

 According to media reports,  India exports to Bangladesh was US$7.91 Billion during 2020 (United Nations COMTRADE database on international trade). In the last one year, Bangladesh-India trade has increased by 94%. At the end of the current financial year, Bangladesh’s exports to India are expected to reach 2 billion for the first time. India is keen to take this trade relationship to a new height.

 

Bangladesh’s stable economic development is creating new opportunities for India’s northeastern states and work on a CEPA trade agreement is ongoing. The two countries are celebrating 50 years of India-Bangladesh friendship and India’s President Ram Nath Kovind completed a successful visit to Bangladesh last year.

 

2021 marks the golden jubilee of the liberation of Bangladesh and fifty years of India-Bangladesh diplomatic ties. India’s President Ram Nath Kovind is currently on a three-day state visit to Bangladesh from December 15 to 17, 2021; this is his first state visit since the outbreak of the COVID pandemic. 

 

Speaking on the state of bilateral ties in November, India’s Defense Minister Rajnath Singh affirmed that India Bangladesh relations are going through a golden phase. As Bangladesh attains 'developing nation' status (upgrading from 'less developed country' status), India has reiterated its commitment to deepen trade and economic ties with Bangladesh as partners rather than competitors. That Bangladesh is India’s biggest trade partner in South Asia, with a volume of over US$10 billion, is testimony to this commitment. In the same pursuit, both countries are working to finalize a Comprehensive Economic Partnership Agreement (CEPA).

 

Bangladesh’s holistic development is also viewed positively by New Delhi with new opportunities arising along India’s northeast region. Bangladesh and India share a 4096-kilometer-long (2545 miles) international border, the fifth-longest land border in the world, including 262 km (163 mi) in the state of Assam, 856 km (532 mi) in Tripura, 318 km (198 mi) in Mizoram, 443 km (275 mi) in Meghalaya, and 2217 km (1378 mi) in West Bengal.

 

Economic and commercial partnership between India and Bangladesh

According to various Indian and Bangladeshi media reports, Bangladesh may become India’s fourth largest export destination in FY22, jumping five places in two years. This comes as the economic boom of the eastern neighbour continues to fuel India’s exports growth.

 

Indian media outlet ‘Business Standard’ wrote last year that the first seven months of FY22, exports to Bangladesh grew 81 per cent over the same period in the preceding year to $7.7 billion. This makes it India’s fourth largest export market behind the US, UAE and China.

 

Bangladesh is India’s biggest trade partner in South Asia and India is the second biggest trade partner of Bangladesh. Bilateral trade between India and Bangladesh has grown steadily over the last decade and the exports of Bangladesh have tripled over the last decade to cross US$1 billion in 2018-19. In FY 2019-20, India’s exports to Bangladesh were US$8.2 billion and imports were US$1.26 billion.

 

 The two countries now should concentrate on people-to-people contact, trade, business and connectivity as the issues became increasingly important for the two sides. India could be a major supplier of yarn and cotton to the garment industry in the near future.

 

A deeper economic and trade engagement becomes all the more relevant, given the success of phenomenal and uninterrupted supply chains during the pandemic. An augmented connectivity infrastructure is imperative to actualize the bilateral trade and investment potential between the two countries. India’s Commerce and Industry Minister Piyush Goyal has recognized five focus areas to bolster bilateral economic ties – technology, connectivity, entrepreneurship, health, and tourism. Bangladesh is also important for aiding India’s connectivity in the Southeast Asian region through Chittagong and Mongla ports.

 

Indian and Bangladeshi companies signed agreements worth nearly $10 billion for Indian investment, mainly in the power and energy sectors, during a visit of Prime Minister Sheikh Hasina to India in April 2017.

 

And with Indian economic zones coming up at Mongla and Mirsarai, the amount of FDIs from the neighbouring nation is bound to increase manifold.

 

Both India and Bangladesh are also working towards holding the first meeting of the India Bangladesh CEOs Forum to provide policy level inputs in various areas of trade and investment and also to facilitate exchanges among the business communities of both the countries. Additionally, a bilateral textile industry forum has also been constituted to facilitate cooperation in the textile sector.

 

According to the data of media outlets, With Bangladesh being the central pillar of India’s Neighbourhood First policy, Dhaka is New Delhi’s largest trade partner in South Asia and bilateral trade between the two countries grew at an unprecedented rate of 14 per cent during the COVID-19 pandemic. the COVID-19 pandemic, bilateral trade was at an unprecedented rate of 14 per cent from 9.46 billion US dollars in 2019 to 10.78 billion dollars in 2021. Joint energy space is steadily emerging, India and Bangladesh’s electricity grids are interconnected from east and west with more than 1160 megawatts of powers way across from India and Bangladesh.The ?346 crore Pipeline Project, signed in 2018, will connect Siliguri in West Bengal in India and Parbatipur in Dinajpur district of Bangladesh. The work on the India-Bangladesh Friendship Pipeline, a project that will enable the two countries to integrate their energy needs, is progressing well and could be inaugurated next year. ( The NDTV, the Hindu, Foreign Secretary Harsh Vardhan Shringla )

 

Despite COVID-19 restrictions, the trade between India and Bangladesh crossed $10 billion. . India had sent over one crore COVID-19 vaccines to the country and has extended concessional credit lines of about $8 billion, the highest for any single country. India is also developing two Indian economic zones at Mirsarai and Mongla. Prime Minister Narendra Modi’s invitation to 50 young entrepreneurs from Bangladesh will further augment our ties. Over 350 Indian companies are now registered in Bangladesh. The India-Bangladesh CEO Forum will meet soon for the first time, even as the two countries work towards finalising a Comprehensive Economic Partnership Agreement (CEPA) to deepen trade and economic ties as partners rather than competitors.

 

India stands 'shoulder to shoulder' with the country’s leadership and people in their development journey.

 

Noting that India-Bangladesh supply chains worked uninterrupted through the pandemic, Improving connectivity is 'imperative' for expanding and realising the potential for bilateral trade and investments. The two countries’ leaders have brought Delhi and Dhaka closer and can together bring economic prosperity to South Asia. ( The Hindu, Commerce and Industry Minister Piyush Goyal)

 

India and Bangladesh have signed a Memorandum of Understanding (MoU) for the construction of a high-speed diesel pipeline from Nonmilitary in Assam to Parbatipur in Bangladesh, a joint venture between Numaligarh Refinery Limited and Bangladesh Petroleum Corporation. As an indication of goodwill, an initial consignment of 2200 ton of diesel has already been transported from Siliguri in West Bengal to Parbatipur in 50 wagons by the Indian Railways

 

Furthermore, India-Bangladesh cooperation in the power sector too has become an important aspect in this bilateral relationship. Bangladesh is currently importing 1160 MW of power from India. The Joint Working Group (JWG)/Joint Steering Committee (JSC) on power provides an institutional framework to promote bilateral cooperation in cross border trade of electricity.

 

How is India aiding Bangladesh as a development partner?

 

Presently, Bangladesh remains India’s biggest development partner. Over the past eight years, India has extended three Lines of Credits (LOC) to Bangladesh, amounting to US$8 billion for development of infrastructure in various sectors, including roads, railways, shipping, and ports. Additionally, India has also been providing grant assistance to Bangladesh for various infrastructure projects, including construction of Akhaura-Agartala rail link, dredging of inland waterways in Bangladesh, and construction of India-Bangladesh Friendship Pipeline.

 

Further, High Impact Community Development Projects (HICDPs) also form an important part of India’s developmental assistance to Bangladesh, with India having funded 68 HICDPs, including construction of, academic buildings, cultural centers, skill development and training institutes, student hostels, and orphanages etc. in Bangladesh. 16 additional HICDPs are being implemented.

 

Although there is a huge trade deficit between Bangladesh and India. As a big partner, India has been enjoying the major trade volume but India should consider this with its highest sincere consideration. Bangladesh is a well trusted ally of India. India should give more duty free access of Bangladeshi products.

 

This growing trade and economic ties are very important for the two fraternal ties. India and Bangladesh are really eternal friends. Their bondage is based on strong neighbourly spirit. However, this growing trade and economic ties will definitely benefit the people of the two countries. India and Bangladesh can benefit from growing trade and economic ties. We hope that thus bilateral growing trade and economic ties reflects better bilateral understanding.