India’s neighborhood will provide the “greatest economic opportunities” to Indian industry, Foreign Secretary Harsh Vardhan Shringla said, as India takes lead in reducing trade barriers and improving connectivity for boosting bilateral trade with neighboring countries.

“With economic growth in our neighboring countries and our emphasis on improving trade infrastructure and cross-border connectivity, the neighborhood will provide some of the greatest economic opportunities for the Indian industry,” Shringla said in his speech on Monday delivered at an event, ‘Post-Covid Economic Recovery’, organized by the Bharat Chamber of Commerce.

Under the Neighborhood-First Policy”, Shringla said, India has placed "renewed emphasis" on "deepening economic ties" besides political and strategic ties with neighboring countries by reducing trade barriers and focusing on seamless movement of goods and people.

“Bangladesh and Nepal are now among the top ten export destinations for India with our total exports to these two countries amounting to over $16 billion,” Shringla said, terming them as “two success stories.” Indian industry, he said has much to offer to Bangladesh which has been undertaking rapid infrastructure development.

However, the potential for enhancing bilateral trade with Bangladesh is immense as the country has grown with average GDP growth of over 6 percent in the last decade, Shringla said, pointing out a recent World Bank study saying the bilateral trade could grow by almost 172 percent with improved connectivity.

Recounting several steps to boost cross-border connectivity, including the revival of historic rail links with Bangladesh, Shringla said, “Now, a container cargo can be transported from Mumbai port all the way to Dhaka using railways, and from Patna to various business centers in Bangladesh using waterways.”

Similarly, Nepal has emerged as the ninth top destination for Indian exports, and an important destination for Indian investment, accounting for almost 30 percent of Nepal’s foreign direct investments.

“A series of cross-border connectivity projects like Integrated Checks Posts and cross-border rail links and roads have also been implemented with Nepal,” he said. Over 150 Indian firms are already working in the country and more would invest in fields like include vehicle assembly, hydropower, medicinal and aromatic plants, and pharmaceuticals.
(SAM)