Power and gas are the leading investment projects in India currently.
With the recent developments in the foreign relations between India and Bangladesh, India has proposed a $9 billion investment in Bangladesh energy projects.
This is said to help strengthen Dhaka’s emerging industrial base.
Indian companies like Reliance, Adani Groups and NTPC were among those that are part of the $9 billion investmenet deal confirmed on Monday, 10th of April, 2017.
Bangladeshi Prime Minister Sheikh Hasina has approved this deal in order to strengthen electric supply and enhance power generation in the country.
This stands out as a cross-border power connectivity has been a key factor of closeness between both countries in the past as well.
As part of this deal, an agreement has been drawn between EXIM Bank of India and Bangladesh India Friendship Power Company Limited for the construction of Maitree Power Project, to be situated in Rampal, Bangladesh, for a value of $1.6 billion.
Along with this certain other agreements have been signed between the two countries:-
Three early-stage agreements have been signed between Indian and Bangladeshi companies with reference to cooperation in the arena of LPG (Liquified Natural Gas).
Petrobangla and Petronet LNG have signed agreements for terminal use of LNG.
Numaligarh Refinery Limited and Bangladesh Petroleum Corporation have signed agreements for the purchase and sale of diesel.
Given the current state of affairs, companies from both countries are looking to explore newer investment opportunities and hope to set up join ventures that could further strengthen the political relations between India and Bangladesh.
In Bangladesh, a wide range of sectors like telecommunication, automotive, consumer goods, textiles and pharmaceuticals remain dominated by a large number of Indian investments.
Governments from both countries believe such moves could lead to the creation of an enabling environment for business communities from both countries to tap into lucrative investment opportunities.
According to recent statistics, cross-border trade, transport, telecom, cyber, and energy links have seen a major improvement in the past couple of years, in spite of the ill-effects of demonetisation.
These attempts add on to remonitising measures undertaken by the Indian Government to restore any economic prowess lost.
After the “Make in India”, a large number of liberal measures have been taken to make business an easier activity within the country.
More and more people have begun feeling that economic integration should not be limited to just Bangladesh – but more countries need to be invited to tap into India’s lucrative business environment.
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