An assembly of Indian companies and organizations has expressed significant interest in making investments within Bangladesh, specifically targeting the fields of energy, healthcare, and education. They noted that the market size of Bangladesh is progressively growing, while the interconnectivity between the two neighboring countries is strengthening.
ICC’s Director General, Dr. Rajeev Singh, spearheaded a group of 85 Indian enterprises on a visit to Bangladesh to partake in the India-Bangladesh Business Leaders’ Meet. During this event, businesses from both nations engaged in conversations about potential commercial prospects.
The event was collaboratively arranged by the Indian Chamber of Commerce and the India-Bangladesh Chamber of Commerce and Industry.
Abdul Matlub Ahmad, the president of the India-Bangladesh Chamber of Commerce and Industry, and Rajeev Singh, the director general of the Indian Chamber of Commerce, led the moderation of the press conference.
Companies’ objects
Entities like Indian Gas Exchange Ltd (IGX) and National Hydroelectric Power Corporation (NHPC) Limited have shown keen interest in engaging in cross-border trade of gas and electricity. At the same time, Desun, a medical service provider, and Guru Kashi University, an educational institution, have articulated their intentions to undertake construction projects aimed at developing infrastructure within the borders of Bangladesh.
Sajal Dutta, the Chairman and Managing Director of Desun Hospital in West Bengal, mentioned that they are actively seeking suitable land in four locations –
- Dhaka
- Chattogram
- Sylhet
- Khulna – to set up specialized hospitals focusing on cardiac care, cancer treatment, neurology, and gastroenterology.
“Our objective is to set up the hospitals within a span of five years, with a total investment of Tk1,000 crore,” he stated during a press briefing arranged by the Indian Chamber of Commerce (ICC) at Hotel Pan Pacific Sonargaon Dhaka on Sunday.
3 significant factors provoked investor interest in Bangladesh
To start with, the country boasts labor costs that are merely one-third of those found in India, enhancing its competitive edge.
Additionally, Bangladesh’s substantial market accessibility, supported by a population of around 170 million, is driven by a burgeoning middle class and their rising consumer demands.
Lastly, Bangladesh’s designation as a Least Developed Country (LDC) renders it eligible for duty-free entry into 39 countries globally, including India, thus positioning it as an enticing hub for investment.
Indian companies offer gas and electricity solutions to Bangladesh
Speaking at the press conference, Rajesh Kumar Mediratta, the managing director and CEO of Indian Gas Exchange Ltd, conveyed their intention to supply gas to Bangladesh via a cross-border pipeline originating from India’s Haldia Port.
“The necessary pipeline infrastructure within India is already in place. Bangladesh can easily import gas from us by establishing a mere 100km pipeline,” he explained.
Addressing the topic of hydroelectricity trade, Rajat Gupta, the executive director of India’s National Hydroelectric Power Corporation (NHPC) Limited, highlighted their considerable portfolio of 7097.2 MW electricity generation capacity, primarily sourced from hydropower.
“If Bangladesh is interested, it can access cost-effective electricity from us through a cross-border grid,” added Rajat Gupta.
Currently, Bangladesh imports approximately 2,760 MW of electricity through cross-border power transmission lines and has recently inaugurated a cross-border pipeline for importing liquefied fuel.
Desun hospital eyes Tk1,000 crore investment for Bangladesh expansion
Desun Hospital, headquartered in Kolkata, is gearing up to invest Tk1,000 crore in the establishment of a new hospital in Bangladesh.
Sajal Dutta, Chairman of Desun Hospital, shared, “We are currently in the process of identifying suitable locations within four divisions of Bangladesh – Dhaka, Chottogram, Sylhet, and Khulna.
Our intent is to set up a hospital in any of these cities.” Dutta also outlined the hospital’s timeline, aiming to have it operational within a five-year timeframe. He emphasized that the hospital’s primary focus would be on providing specialized medical services for cardiac, cancer, neurology, and gastrology treatments.
Concurrently, Guru Kashi University from India has unveiled plans to establish a campus in Bangladesh, catering to high-quality higher education, particularly in fields related to information technology.
Dr. B Abdul Rafeeq, Director of Corporate Affairs at Guru Kashi University, noted, “To realize this campus, we have developed an investment plan of Tk500 crore.”
Indian entrepreneurs explore Bangladesh’s education market
The Indian education entrepreneurs highlighted that India’s reputation for delivering top-notch education extends to Bangladesh, where a substantial demand for such quality education exists. They particularly emphasized that India has the potential to provide excellent education in fields like information technology (IT), agriculture, and technical disciplines.
They noted the limited presence of comprehensive on-campus job placement programs in Bangladesh, which opens the door for Indian educational institutions to collaborate with their Bangladeshi counterparts in addressing this aspect.
Dr. B Abdul Rafeeq, the Director of Corporate Affairs at Guru Kashi University based in Punjab, expressed their long-term investment aspirations within Bangladesh’s education sector. He elucidated,
“We are presented with investment opportunities when the Bangladesh government engages and collaborates with us. Our objective is to establish a collective of institutions and universities in Bangladesh.”
Based on information shared by the ICC, the size of the higher education market in Bangladesh is estimated to be $4.6 billion.
NHPC highlights hydropower’s role for Bangladesh’s energy
An executive from NHPC Ltd, a public sector hydropower company in India, highlighted Bangladesh’s substantial power demand. Considering the implications of climate change, hydropower is projected to play a pivotal role in the energy landscape. The potential for hydropower from Bhutan and India’s Northeast was also underscored, with plans to tap into this resource. The company, which is already engaged in hydropower production in Nepal, envisions the eventual import of hydropower to Bangladesh.
During the business discussions between the delegations of Bangladesh and India, the business potential of agricultural products between the two nations was explored. However, challenges related to tariff and non-tariff barriers were acknowledged, requiring resolution for smoother trade. Abdul Matlub Ahmad, President of the India Bangladesh Chamber of Commerce and Industry, also shared insights.
Concurrently, the BIMSTEC Energy Conference was held at the hotel. Pranay Verma, the Indian High Commissioner to Bangladesh, emphasized the importance of bolstering energy connectivity in the region, along with transport connectivity, as these two sectors are pivotal for the region’s future.
He also emphasized the pivotal role of India-Bangladesh relations as a cornerstone in the cooperation framework of BIMSTEC.
He further highlighted the strengthening ties between the two countries, particularly evident in the expanding collaboration within the domain of power and energy.
The event also saw contributions from various speakers including Tenzin Lekphell, the Secretary-General of BIMSTEC; Aung Kyaw Moe, the Ambassador of Myanmar; Jigdrel Y Tshering, the charges d’affaires of the Embassy of Bhutan; Md Nurul Amin, the Chairman of the Bangladesh Energy Regulatory Commission; and Faisal Khan, the Managing Director of Summit Group.
