Thaindian News

Dhaka, July 7 (IANS) Ahead of Indian Prime Minister Manmohan Singh’s visit to Bangladesh, the two countries Thursday signed two pacts aimed at boosting investment and enhancing Bangladeshi exports, key steps that will address the irritant of the trade imbalance that has shadowed bilateral ties.

The two sides also decided to intensify their joint efforts to combat terror and renewed their pledge not to allow their territories to be used by forces inimical to each other.

India’s External Affairs Minister S.M. Krishna, who began his three-day visit to Dhaka Wednesday, held talks with his counterpart Dipu Moni on a range of issues that covered trade and investment, terrorism, the boundary issue and the sharing of river waters.

The talks have set the stage for Manmohan Singh’s visit to Dhaka Sept 6-7, a trip that was announced simultaneously by New Delhi and Dhaka earlier this week.

The countries signed two trade-related pacts, including an exchange of instruments of ratification related to the Bilateral Investment Promotion and Protection Agreement (BIPPA) and Standard Operating Procedure for the entry of trucks from Bhutan into territories of the two countries near the border.

They also reviewed a slew of important steps that are enhancing exports from Bangladesh, which will help in addressing the trade imbalance that continues to be in favour of India. Trade imbalance has been a key irritant in bilateral relations, providing a handle to anti-India forces in the neighbouring country.

“The constant interaction between the two business communities has resulted in several joint venture agreements for export oriented manufacturing activities in Bangladesh. Indian investments in Bangladesh will provide employment and also promote bilateral trade,” Krishna said at a joint press conference with Moni.

“We are happy to note that exports from Bangladesh to India have increased by 56 percent in the first 10 months of 2010-11. We want exports from Bangladesh to grow further,” Krishna stressed.

“The annual duty free quota for export of garments from Bangladesh to India has been raised from 8 to 10 million pieces,” he added.

Underlining that bilateral relations have been on a high trajectory, Krishna said that a number of projects approved under the $1 billion line of credit granted by India during Bangladesh Prime Minister Sheikh Hasina’s visit to India were under implementation.

Cooperation in the power sector got a fresh boost with India responding positively to Bangladesh’s request for setting up of a high technology joint venture thermal power plant of 1320 MW capacity at Khulna. India has completed the feasibility report for the project, Krishna said.

Saying negotiations for interim sharing of Teesta and Feni river waters and the talks for the resolution of the boundary issue were making considerable progress, Krishna reaffirmed that India attaches “the highest importance” to its relations with Bangladesh and sought a deeper and stronger partnership.

Krishna also mentioned burgeoning security cooperation, signalling greater trust between the two countries.

“Both countries recognise the importance of cooperation in the field of security and are determined to jointly combat the menace of insurgency, militancy and terrorism. Our leadership has been in agreement that the territory of either would not be allowed for activities inimical to the other,” he added.