India and Bangladesh share a strong bond based on their common history, language, and culture. India was quick to recognize Bangladesh and establish diplomatic relations in 1971, right after its independence. This relationship goes beyond just strategic cooperation; it’s rooted in equality, trust, and understanding. When it comes to trade, Bangladesh is India’s biggest trading partner in the subcontinent. In return, India is the second-largest export partner for Bangladesh, making up 12% of its total exports. In the fiscal year 2023, the total trade turnover between the two countries reached an impressive $14.22 billion. This economic collaboration highlights the deep connection and interdependence between India and Bangladesh, showcasing a partnership that extends beyond political ties. Most Bangladeshi products have easy access to Indian markets although this is for now diluted by the difficulty in penetrating the vast but highly competitive Indian market. Indian goods are transshipped through Bangladesh to connect its eastern region with its far-eastern region using Bangladeshi transportation, literally a quid pro quo. 

 

Bangladesh-India Trade Cooperation 2023 

 

India experienced a remarkable surge in exports to Bangladesh during the fiscal year 2023, showcasing the robust economic partnership between the two nations. The volume of trade encompassed an impressive array of 6,050 different commodities, highlighting the diversity in goods exchanged. Notably, the export figures reached US$ 12.20 billion, emphasizing significant growth compared to the previous fiscal year’s US$ 16.15 billion. Key contributors to this surge included other commodities valued at US$ 1.17 billion, cotton yarn (US$ 1.02 billion), petroleum products (US$ 816 million), other cereals (US$ 556 million), and cotton fabrics, made-ups, etc. (US$ 541 million). This momentum persisted into the initial months of April-May 2023, with exports reaching US$ 1.67 billion, underscoring the continued strength of the trade relationship.

 

The fiscal year 2023 witnessed an expanding appetite for Bangladeshi goods in India, as reflected in the import statistics. A diverse range of 1,155 commodities was imported from Bangladesh, contributing to a commendable US$ 2.02 billion in imports. This marked a notable increase from the previous year’s figure of US$ 1.97 billion. Leading items in India’s import basket included RMG cotton (US$ 510 million), cotton fabrics, made-ups, etc. (US$ 153 million), RMG manmade fibers (US$ 142 million), spices (US$ 125 million), and jute (US$ 103 million). The positive trend persisted into April-May 2023, with imports totaling US$ 278 million. This ongoing growth underscores the sustained and expanding economic exchange between India and Bangladesh, affirming the mutual benefit derived from their trade relationship.

 

 

Comprehensive Economic Partnership Agreement (CEPA)

 

India and Bangladesh are actively working towards a Comprehensive Economic Partnership Agreement (CEPA) in 2023, aiming to strengthen their economic ties. This agreement is anticipated to significantly boost trade, create job opportunities, and enhance living standards in both nations. The collaboration reflects a commitment to expanding the market for mutual benefit, fostering economic growth and development.

 

Swadhinata Sarak and Maitree Thermal Power Project

 

The Swadhinata Sarak, a road infrastructure project, serves as a symbol of the growing friendship between India and Bangladesh. Beyond strategic interests, it focuses on enhancing connectivity between the two nations, fostering an environment conducive to increased trade. Additionally, the joint inauguration of the Maitree Thermal Power project by the Prime Ministers contributes to energy security, adding to the already significant areas of cooperation, including trade, connectivity, and water sharing.

 

Currency Diversification in Bilateral Trade

 

In April 2023, India and Bangladesh took a strategic step to simplify trade transactions by agreeing to use their own currencies (Rupee and Taka) for a part of their bilateral trade. This move aims to reduce dependence on the US dollar, making trade more convenient for both nations. The gradual shift to local currencies aligns with the global trend of currency diversification and signifies a proactive approach to enhance economic cooperation.

 

Border Haats Expansion

 

Bangladesh and India are exploring the establishment of 16 new border haats, particularly in Mizoram and West Bengal. These initiatives aim to boost trade by providing better access to markets and economic opportunities for border communities. The expansion aligns with the broader strategy of reducing informal trade along the border, fostering economic growth in these regions.

 

Infrastructure and Connectivity Improvements

 

Both nations are actively enhancing infrastructure and connectivity to promote trade. Supported by initiatives, including Japanese funding, these efforts include the development of the Matabari Port in Bangladesh by 2027. The improved infrastructure is expected to facilitate smoother trade flows from India to Bangladesh and onward to Asian markets. Collaborative projects like the “Bay of Bengal Northeast Industrial Value Chain Concept” further underscore the commitment to strengthening economic ties.

 

Other developments 

 

In 2023, India and Bangladesh have elevated their economic partnership to a new level through a series of Memoranda of Understanding (MoUs) covering crucial areas. These agreements represent a comprehensive approach, focusing on water management, railway collaboration, scientific research, space technology, broadcasting, and judiciary. This holistic strategy addresses various facets that collectively strengthen the foundation for increased trade and mutual economic benefits between the two nations.

 

Expanding Bilateral Trade for Mutual Benefit

 

The future of Bangladesh-India trade cooperation holds immense potential for mutual benefit and regional prosperity. The Indo-Pacific, with its economic dynamism and strategic relevance, has become a focal point for foreign policy considerations. Within this framework, the Bay of Bengal region stands out as a vital area for growth and collaboration. The bilateral relations between Bangladesh and India serve as a model for the entire region, showcasing collaborative efforts that span various sectors. As the geopolitical construct of the Indo-Pacific evolves, it is crucial for these smaller regions to develop through inter-country cooperation and a shared vision of the future.

 

The trade dynamics between Bangladesh and India are central to this shared future. Through initiatives like Comprehensive Economic Partnership Agreements (CEPA) and the Bay of Bengal Northeast Industrial Value Chain Concept, both nations aim to boost trade and economic ties significantly. Such collaborations are expected to result in substantial growth in exports and imports, contributing to the prosperity of both countries. An increased focus on water management, transportation connectivity, scientific cooperation, and space technology further strengthens the foundation for a flourishing trade relationship.

 

As both nations continue to navigate the complexities of regional geopolitics, their commitment to a shared future becomes crucial. By fostering economic cooperation, addressing common challenges, and strengthening diplomatic ties, Bangladesh and India are poised to shape a positive and mutually beneficial trajectory for their trade relations in the years to come.

 

Navigating Challenges and Building Collaborations

 

The future of Bangladesh-India trade cooperation is not without challenges. The specter of potential migration due to climate change in Bangladesh poses a unique set of considerations for India. However, a shared commitment to securing Bangladesh politically, socially, and economically becomes a driving force in preventing undesirable scenarios. By emphasizing inclusive policies and sustainable development, both nations can proactively address challenges related to migration, contributing to regional stability.

 

While China plays a significant role in the region, the unique historical and geographical ties between India and Bangladesh create a distinct imperative for collaboration. Despite China’s economic presence, the strategic importance of India as a neighbor with the longest land border in South Asia cannot be overlooked. This inescapable relationship brings obligations, encouraging a nuanced approach to diplomacy that prioritizes being Bangladesh-friendly.

 

The potential for a Free Trade Agreement (FTA) adds another layer to the positive trajectory of Bangladesh-India trade. Projections indicate significant growth in bilateral trade if an FTA is established, offering opportunities for both nations to capitalize on their respective strengths. Initiatives like the “Bay of Bengal Northeast Industrial Value Chain Concept” further underscore the commitment to attracting manufacturing and increasing trade.

 

To conclude, in 2023, the Bangladesh-India trade relations have reached noteworthy milestones, laying the groundwork for unprecedented growth and collaboration. The Comprehensive Economic Partnership Agreement (CEPA) underscores a shared commitment to economic expansion, job creation, and improved living standards. Symbolic projects like the Swadhinata Sarak and the Maitree Thermal Power project signify deepening ties and contribute to enhanced connectivity and energy security, vital elements for fostering increased trade. The strategic move towards currency diversification in bilateral trade reflects a proactive approach to facilitate smoother transactions. Initiatives like the expansion of border haats, infrastructure enhancements, and collaborative projects demonstrate a joint vision for robust economic ties and regional development. The series of Memoranda of Understanding (MoUs) covering crucial areas further exemplify the comprehensive nature of this economic partnership, reinforcing the foundation for increased trade and mutual economic benefits. This collective effort, marked by a collaborative spirit, not only navigates challenges but also contributes to the broader prosperity of the region.

Sachin Shivappa Doddamala, a progressive farmer from Basaragi village in Jatta taluk, Belagavi district, has emerged as an agricultural innovator, independently cultivating a unique grape variety known as VSD grapes.

 

Breaking away from the traditional reliance on researched cultivars provided by agricultural researchers, Sachin’s experiment with the VSD grape crop has garnered attention for its distinctive three-inch length, a significant deviation from the usual inch-and-a-half size grapes.

 

The journey of VSD grapes began when a farmer in Kawatemahakala village in Maharashtra discovered this super variety grape crop. After years of trials, the plant was named VSD, and Sachin successfully grew three to four-inch grape crops, attracting farmers from both Maharashtra and Karnataka to visit his farm and learn about this innovative cultivation.

 

The VSD variety, known for its higher yield compared to other grapes, has become a boon for farmers. Sachin’s farm, where the VSD grapes are cultivated, yields 20 tonnes per acre, fetching a price of Rs 60 to 80 per kilogram. The unique fruit has garnered demand not only domestically but also internationally, with exports to countries like Dubai, America, and Australia through Mumbai.

 

Long vines and soft texture

Characterized by its long vines and soft texture, the VSD grape variety has become a sought-after choice. Speaking to Siasat.com on Friday, Sachin shared his experiences, stating that while they traditionally grow grapes in their region over 70 acres, the introduction of VSD grapes from a neighboring village prompted them to experiment further. The cost-effective nature of this grape breed, coupled with its resistance to diseases, has made it advantageous for farmers.

 

Sachin, working alongside his nine siblings and relying on water brought from a distance of 18 kilometers, expressed satisfaction with the success of the grape crop, emphasizing the happiness it brings along with substantial income. He added that there is a growing demand for the VSD grape variety from abroad, with traders eagerly supplying grapes.

 

Encouraging other farmers, Sachin offered to share information about the crop and welcomed inquiries at 9307646705. The success story of VSD grapes showcases the potential of independent research and innovation in agriculture, contributing to increased yields and income for farmers.

 

India has asked the U.S. to allow domestic labs also for irradiation of certain fruits like mangoes with a view to helping exporters cut additional trade costs, an official said.

 

At present, exporters have to carry out irradiation at the U.S. ports, which increases cost and uncertainty in case of rejection of the consignment.

 

The issue was raised during the 14th India-U.S. Trade Policy Forum meeting here on January 12.

 

'We have raised the issue of fruit irradiation which they do on their coast. Let it happen here. They can allow Indian labs to do so. It will reduce trade costs in a way,' the official said.

 

According to international trade experts, several Indian products may require irradiation at the U.S. ports before entering the U.S. market to comply with the Animal and Plant Health Inspection Service (APHIS) regulations and prevent the introduction of harmful pests and diseases.

 

Think tank GTRI Co-Founder Ajay Srivastava said that a better way is to carry out irradiation in India before exports as modern facilities are available in India that can meet the U.S. import requirements.

 

Irradiation improves safety of fruits as it kills microorganisms. Irradiation helps eliminate pests without affecting the quality of the fruit.

 

Irradiation facilities are in Gujarat (Gujarat Agro Gamma Irradiation Facility, Ahmedabad), Maharashtra (Gamma Radiation Services In Ambernath; and Agrosurg Irradiators (India) in Mumbai); Telangana (GAMMA AGRO-MEDICAL PROCESSINGS PVT LTD , Pashamylaram), and Tamil Nadu (Gamma Tech India in Kayathar).

 

Fruits which require irradiation include fresh mangoes, grapes, pomegranates, spices, besides some handicraft, furniture and animal products like hides and skin.

 

'Indian mangoes are known for their sweetness and flavour but they can harbour fruit flies that pose a threat to U.S. agriculture. Irradiation helps eliminate these pests without affecting the quality of the fruit. Similarly, grapes from India can carry fruit flies and other quarantine pests,' he said.

 

Irradiation effectively disinfests them for safe entry into the U.S.

 

About pomegranates, Mr. Srivastava said that the juicy arils of Indian pomegranates are a popular treat, but they can be infested with mealybugs and other insects. Irradiation ensures they arrive pest-free in the U.S.

 

'Certain Indian spices, like coriander seeds and fenugreek, can harbour insects and fungal spores. Irradiation helps decontaminate them for safer consumption in the U.S. Wood can harbour wood-boring beetles and other insects that can damage U.S. forests. Irradiation helps protect U.S. trees from these pests,' he said.

The commerce ministry has called a meeting of all stakeholders, including government officials and trade sector experts, on January 20 to discuss issues which are likely to figure in the WTO meeting, an official said. The 13th Ministerial Conference (MC) of World Trade Organization (WTO) is scheduled from February 26-29 in Abu Dhabi, the UAE.

 

MC is the highest decision-making body of the 164-member WTO, which monitors global exports and imports besides adjudicating disputes between member countries. India is the member of the organisation since 1995.

 

The issues which would figure in the MC 13 include agriculture, food security, dispute settlement reform, e-commerce moratorium, and fisheries subsidies.

 

'We are meeting all the stakeholders on January 20,' the official said.

 

On the food security issue, India has called for finding a permanent solution to the issue of public stockholding for food security in the ministerial-level meeting.

 

It has dismissed arguments for alternative food security solutions beyond PSH (public stock holding) and SSM (special safeguard mechanism).

 

On the e-commerce sector, the WTO members have agreed not to impose customs duties on electronic transmissions since 1998. India opposes the continuation.

The country's masur (lentil) production is estimated to touch an all-time high of 1.6 million tonnes in the 2023-24 rabi season on higher acreage, according to Consumer Affairs Secretary Rohit Kumar Singh. Masur production stood at 1.55 million tonnes in the 2022-23 rabi season, as per the official data.

 

Despite being the world's largest producer and consumer of pulses, India imports certain pulses, including masur and tur, to meet domestic shortages.

 

'This year, masur production is going to be at an all-time high. Our masur production will be the highest in the world. The acreage has increased. The dynamic is changing,' Singh said at an event organised by the Global Pulse Confederation (GPC) on Friday.

 

In the ongoing rabi season, more area has been brought under the masur crop. The total masur acreage has increased to 1.94 million hectare as of January 12 in the ongoing rabi season, when compared to 1.83 million hectare in the year-ago period, according to the agriculture ministry data.

 

On the sidelines of the event, the Secretary said masur production is estimated at 1.6 million tonnes for the current rabi season.

 

He also mentioned that the country produces on an average 26-27 million tonnes of pulses annually. In chana and moong, the country is self-sufficient but in other pulses like tur and masur, it still imports to meet the shortages.

 

'While we pitch for self-reliance in pulses, we cannot ignore that for some time to come, we probably need to keep (pulses) imports running,' he said.

 

While the government is incentivising farmers to grow more pulses, one needs to keep in mind the limited area under cultivation, he added.

 

Sharing how difficult it is to balance the farmers' and consumers' interests, the Secretary said, 'I think we are doing ok in the last couple of years. Despite weather disturbances, we have managed to keep the prices of pulses reasonably under control'.

India has asked the US to allow domestic labs also for irradiation of certain fruits like mangoes with a view to helping exporters cut additional trade costs, an official said.

At present, exporters have to carry out irradiation at the US ports, which increases cost and uncertainty in case of rejection of the consignment.

The issue was raised during the 14th India-US Trade Policy Forum meeting here on January 12.

'We have raised the issue of fruit irradiation which they do on their coast. Let it happen here. They can allow Indian labs to do so. It will reduce trade costs in a way,' the official said.

According to international trade experts, several Indian products may require irradiation at the US ports before entering the US market to comply with the Animal and Plant Health Inspection Service (APHIS) regulations and prevent the introduction of harmful pests and diseases.

Think tank GTRI Co-Founder Ajay Srivastava said that a better way is to carry out irradiation in India before exports as modern facilities are available in India that can meet the US import requirements.

Irradiation improves safety of fruits as it kills microorganisms. Irradiation helps eliminate pests without affecting the quality of the fruit.

Irradiation facilities are in Gujarat (Gujarat Agro Gamma Irradiation Facility, Ahmedabad), Maharashtra (Gamma Radiation Services In Ambernath; and Agrosurg Irradiators (India) in Mumbai); Telangana (GAMMA AGRO-MEDICAL PROCESSINGS PVT LTD , Pashamylaram), and Tamil Nadu (Gamma Tech India in Kayathar).

Fruits which require irradiation include fresh mangoes, grapes, pomegranates, spices, besides some handicraft, furniture and animal products like hides and skin.

'Indian mangoes are known for their sweetness and flavour but they can harbour fruit flies that pose a threat to US agriculture. Irradiation helps eliminate these pests without affecting the quality of the fruit. Similarly, grapes from India can carry fruit flies and other quarantine pests,' he said.

Irradiation effectively disinfests them for safe entry into the US.

About pomegranates, Srivastava said that the juicy arils of Indian pomegranates are a popular treat, but they can be infested with mealybugs and other insects. Irradiation ensures they arrive pest-free in the US.

'Certain Indian spices, like coriander seeds and fenugreek, can harbour insects and fungal spores. Irradiation helps decontaminate them for safer consumption in the US. Wood can harbour wood-boring beetles and other insects that can damage US forests. Irradiation helps protect US trees from these pests,' he said.

The term 'organic revolution' denotes the shift towards sustainable and environmentally friendly agricultural practices, avoiding synthetic pesticides and fertilisers. This movement gained momentum as consumers became more conscious of their health, the environment, and the quality of the food they consume.

 

The roots of the organic movement can be traced back to the early 20th century. However, it wasn’t until the 1960s and 1970s that the movement gained significant traction. Pioneers such as Rachel Carson, author of 'Silent Spring,' brought attention to the environmental impacts of pesticides, sparking a renewed interest in organic farming.

 

Global trends

According to the latest data from the International Federation of Organic Agriculture Movements (IFOAM), the global organic agricultural area has expanded by 50 per cent in the past decade. More than 76.4 million hectares were organically managed at the end of 2021. This represents a growth of 1.7 per cent compared to 2020. With 35.7 million hectares, Australia had the largest area under organic agriculture, followed by Argentina and France.

 

Over the years, organic farmland area has increased in Africa, Asia, Europe and Oceania highlighting the growing status of the organic food sector as a lucrative market. Slightly less than half of the global organic agricultural land was in Oceania with 35.9 million hectares followed by Europe and Latin America.

 

Consumer awareness, demand

The surge in consumer demand for organic products is a driving force behind the organic revolution. 3.7 million organic producers were reported in 2021, an increase of 4.9 per cent from 2020. At 1.6 million, India remained the country with the most organic producers.

 

Organic farming practices prioritise soil health, biodiversity, and sustainable land management. Organic agriculture has the potential to contribute significantly to mitigating climate change, preserving water resources, and maintaining soil fertility.

 

In 2021, global organic food sales amounted to about $132.74 billion, whereas it was just $18 billion in 2000. In 2021, In India alone there were nearly 1.6 million organic food producers, more than any other country.

 

North America holds a substantial share, representing nearly half of global organic food retail sales. This region stands as the second-largest market for organic food globally, following Europe. The United States predominantly contributes to this share. Since 2008, organic food has consistently claimed an increasing proportion of total food sales in the United States. Notably, in 2020, organic food accounted for approximately six per cent of the overall food sales in the United States.

 

Way forward

While the organic revolution has gained substantial ground, it faces its share of challenges. The cost of organic certification and the scalability of organic farming operations are persistent concerns.

 

Governmental support and regulations

Governments worldwide are recognising the importance of supporting organic agriculture. In the European Union, the Common Agricultural Policy allocates funds to promote organic farming practices. In the United States, the National Organic Program (NOP) sets the standards for organic certification, ensuring that products labeled as 'organic' meet specific criteria.

 

Indian organic market

India’s organic food market has experienced remarkable growth post-pandemic. According to a survey conducted in 2022 across 187 countries practicing organic agriculture, as reported by the Research Institute of Organic Agriculture (FiBL) and International Federation of Organic Agriculture Movements (IFOAM), India boasts the cultivation of organic food across 2.6 million hectares, ranking it as the fifth-largest globally. The data further indicates that the proportion of land dedicated to organic farming in the overall agricultural landscape is 1.5 per cent. Over the past decade, India has witnessed a substantial increase of 145.1 per cent in the land allocated to organic agriculture.

 

In alignment with this growth, the Economic Survey for the fiscal year 2022-2023 highlighted that India is home to 4.43 million organic farmers, establishing the country as a global leader in terms of organic farming practitioners.

 

As per APEDA (Agricultural and Processed Food Products Export Development Authority), Ministry of Commerce and Industries, India produced around 2.9 million tonnes (2022-23) of certified organic products, including oilseeds, fibre, sugarcane, cereals and millets, cotton, pulses, aromatic and medicinal plants, tea, coffee, fruits, spices, dry fruits, vegetables, and processed foods. This sector’s production extends beyond edible goods to include organic cotton fibre and functional food products.

 

Madhya Pradesh has emerged as the leading state in organic production, with significant contributions from Maharashtra, Rajasthan, Karnataka, and Odisha. When considering specific commodities, fibre crops stand out as the largest category, succeeded by oilseeds, sugar crops, cereals and millets, medicinal/herbal and aromatic plants, spices and condiments, fresh fruits and vegetables, pulses, and tea and coffee. This broad spectrum highlights the diverse and expansive nature of organic agriculture in these regions.

 

Opportunities

Emerging economies present significant opportunities for the organic market. According to a market research report by Grand View Research, the Asia-Pacific region is expected to witness the fastest growth in the organic food market over the next five years. While the organic market growth appeared to slow down in 2022, the momentum for the organic sector has continued to build around the world. Numerous nations have sustained or introduced supportive measures for organic agriculture, unveiling new strategies or policies to stimulate its development. This is reflected in the rise in globally implemented national regulatory frameworks for organics, now totalling 74.

 

As we look ahead, the future of the organic revolution appears promising. Advancements in technology, such as precision agriculture and agro-ecology, are expected to enhance the efficiency and productivity of organic farming. In addition to this, ongoing research into organic farming methods aims to address scalability challenges, making organic agriculture a viable option for meeting global food demands sustainably.

The Centre, state governments and industry representatives will meet on January 16 to discuss ways to boost the country's exports, an official said.

 

Issues which are expected to figure in the meeting include rupee payment challenges, need of global shipping, and challenges being faced by traders on account of the Red Sea crisis, and uncertain global economic situation due to the Russia-Ukraine war and Israel-Hamas conflict.

 

The meeting will be chaired by Commerce and Industry Minister Piyush Goyal. They all are members of the Board of Trade (BoT).

 

'There are over 135 members of BoT. It is meeting on January 16 at Bharat Mandapam,' the official said.

 

Headed by the minister, the board includes participants from various states, Union Territories, and senior officials from the public and private sectors.

 

In the meeting, representatives of export promotion councils present their views on the export sector.

 

The board provides an opportunity to have regular discussions and consultations with trade and industry and advise the government on policy measures on foreign trade.

 

It also provides a platform for state governments and Union Territories to articulate their perspective on trade policy and also for the central government to apprise them about international developments affecting India's trade potential and opportunities.

 

Cumulatively, the country's merchandise exports in April-November 2023-24 contracted by 6.51% to $278.8 billion.

 

Imports were also down by 8.67% to $445.15 billion in the eight-month period due to a fall in oil imports.

As many as eight MoUs were signed in the agro and food processing sector, in the presence of Gujarat's Agriculture Minister Raghavji Patel, on the second day of the ongoing Vibrant Gujarat Global Summit.

Among these MoUs, Asandas and Sons Pvt. Ltd. at Mehsana are planning to invest Rs 1,100 crores, Bhitar Enterprises Pvt. Ltd. is planning a Rs 500 crore investment, Tidy Agroceutical Pvt.

Ltd. intends to invest Rs 400 crores, Grainspan Nutrients Pvt. Ltd. at Ahmedabad plans a Rs 375 crore investment, and Sanstar Ltd at Ahmedabad is set to invest Rs 300 crores in the state.

Additionally, J.M. Coconut Products Pvt Ltd is planning a Rs. 300 crore investment, Mac Patel Foods Pvt. Ltd. in Mehsana is planning to invest Rs. 150 crore, and RPA Agriculture Infrastructure and Solutions Pvt. Ltd. is set to invest Rs. 140 crores in Gujarat.

The summit has also seen several key announcements in the area of semi-conductor manufacturing. On Wednesday Tata Sons chairman N Chandrasekharan announced a semiconductor fabrication plant in Dholera where negotiations will conclude this year.

CEO of Micron Technology Sanjay Mehrotra said that the first phase of the semiconductor assembly and testing facility coming up in Sanand would be operational by early 2025.

Korean tech giant Simmtech also announced plans to establish a cutting-edge semiconductor plant in Sanand, Ahmedabad with an initial investment set at Rs 1,250 crores.

"PM Modi is introducing and leading many industries in India as per the nation's need. The semiconductor industry, one of them, is a foundational industry. This means making semiconductors will lead the way for other creations. The progress and ecosystem of the first plant of semiconductor in Gujarat was discussed and MoUs were signed," says Union Minister AshwVaishaw.

On Wednesday, Prime Minister Narendra Modi inaugurated the 10th edition of Vibrant Gujarat Global Summit 2024 at Mahatma Mandir, Gandhinagar.

The theme of this year's summit is 'Gateway to the Future' and includes the participation of 34 partner countries and 16 partner organizations.

The Summit is also being used as a platform by the Ministry of Development of North-Eastern Region to showcase investment opportunities in the North-Eastern regions.

On the first day, some of the high-value investment proposals included were from Indian companies such as Adani Group, Reliance Industries, Tata Group, and global corporate DP World, among other business conglomerates.

Nepal and India have expressed a commitment to implementing bilateral initiatives aimed at further strengthening the seamless cross-border connectivity, as the officials from the two sides met to discuss ways to fortify the economic and commercial linkages. The India-Nepal Inter-Governmental Sub-Committee (IGSC) on Trade, Transit, and Cooperation to Combat Unauthorised Trade convened its latest session in Kathmandu on January 12-13.

 

Both sides also discussed mutual market access for pharmaceuticals and Ayurvedic products. The Indian side highlighted the need for an IPR regime by the provisions of the Paris Convention for encouraging Foreign direct investment (FDI).

 

Vipul Bansal, Joint Secretary, Ministry of Commerce, Government of India, led the Indian delegation, which included senior officials from various ministries and the Embassy of India in Kathmandu.

 

The Nepali side was headed by Ram Chandra Tiwari, Joint Secretary, Ministry of Industry, Commerce and Supplies, Government of Nepal, accompanied by key representatives from different Nepali Ministries and Departments.

 

One of the highlights of this meeting was the focus on bilateral initiatives aimed at further strengthening the seamless cross-border connectivity between India and Nepal including through the construction of new Integrated Check Posts and railway links.

 

Both sides expressed a commitment to implementing these initiatives, reflecting the shared vision of prosperous bilateral trade.

 

The agenda also covered discussions on the review of the Treaty of Transit and the Treaty of Trade, proposed amendments to existing agreements, strategies for enhancing investment, the harmonisation of standards and the synchronised development of trade infrastructure.

 

India continues to be the principal trade and investment partner for Nepal, significantly contributing to Nepali imports and exports.

 

The discussions in this meeting are expected to further fortify the economic and commercial linkages between the two countries.

 

The IGSC is a bilateral mechanism aimed at bolstering trade and investment ties.