Indian businesses express investment interests in consumer goods

The visiting Indian business delegation has expressed interest in investing in the fast-moving consumer goods (FMCG) sector, proposing the establishment of a state-of-the-art integrated manufacturing plant near Dhaka to produce items such as soaps, home care insecticides, and fragrances.

The Confederation of Indian Industry (CII) during a meeting with Commerce Minister Khandaker Abdul Muktadir at the Secretariat in Dhaka yesterday (18 August) called for harmonising tariff structures for energy-efficient technologies in industries.

The CII representatives stated that adopting their steam-related technologies could save 10% to 35% of gas in the textile, readymade garment, and food processing industries – though tariff disparities currently hinder their adoption, said a press release.

During the meeting, Commerce Minister Khandaker Abdul Muktadir emphasised transforming geographical proximity into economic advantages to enhance trade, investment, and industrial cooperation between Bangladesh and India.

The CII also highlighted the need for an effective regulatory framework to control the quality of unregistered products.

Furthermore, it proposed facilitating internship opportunities for Bangladeshi youth in Indian institutions and assisting in resolving visa complexities for Bangladeshi engineers to work in third countries.

Both sides emphasised leveraging formal discussions, business-level engagement, and institutional frameworks to make the Bangladesh-India economic relationship more effective and fruitful, read the release.

The meeting focused on bilateral trade and investment relations, existing challenges, and future avenues of cooperation. The CII delegation was led by its Director General Chandrajit Banerjee.

The delegation included leaders of India's leading business body and representatives of several prominent companies, some of which already have investments in Bangladesh.

Pointing out that intra-regional trade remains relatively low despite South Asia's large collective economy, Muktadir said that strengthening economic connectivity will create new opportunities for industrialisation, investment, and employment.

Addressing recent trade restrictions between the two nations, the minister stated that discussions are necessary to restore normal trading conditions. He expressed optimism that positive progress will be achieved in this regard within the next few months.

The meeting also addressed visa complexities faced by business professionals and citizens. Muktadir remarked that requiring regular visa applications every few months for frequent travellers for medical, business, and other essential purposes is impractical, and called for bilateral cooperation to establish a long-term visa system.

Task forces to boost trade, investment

Business leaders from Bangladesh and India have agreed to form business-to-business (B2B) task forces to address trade and investment barriers and strengthen bilateral commercial cooperation.

The decision was taken at a meeting between the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the Confederation of Indian Industry (CII) at the FBCCI office in Motijheel yesterday.

The proposed task forces will focus on infrastructure investment and emerging technologies, while the two sides also plan to maintain regular business engagements and organise sector-specific delegations.

Bangladeshi exporters currently face several non-tariff barriers in the Indian market, including testing and certification requirements, customs procedures, port restrictions, licensing rules and high logistics costs.

India also imposed restrictions in 2025 on the entry of ready-made garments, processed food, plastics, furniture and other Bangladeshi products through designated land ports.

FBCCI Administrator Fazlul Hoque said Bangladesh could draw lessons from India's experience in attracting private and foreign investment in infrastructure.

He also stressed the need to attract investment beyond the energy sector amid challenges related to gas and electricity supplies.

CII Director General Chandrajit Banerjee said Indian companies are interested in expanding their investments in Bangladesh, particularly in infrastructure, healthcare and emerging sectors.

The proposed technology task force may explore cooperation in areas including semiconductors, hydrogen, green energy, battery storage, high-speed rail, data centres, artificial intelligence and solar manufacturing.

The business leaders expressed hope that stronger commercial ties between the two countries would help create a more positive environment for broader Bangladesh-India relations.