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The Indian delegation, headed by ICC president Sanjay Budhia, while meeting Bangladesh Prime Minister Sheikh Hasina in Dhaka on Monday, expressed willingness to set up an SEZ there. For this, it has sought a suitable 150 acre plot in that country, wherein it may attract Indian investments worth $5 billion, suggested the chamber.

Direct investment from India could help Bangladesh reduce its trade deficit with India. Massive investments from Indian corporates, including prominent ICC members will create surplus capacity which would not only improve availability of manufactured goods and diversify its basket of goods for re-export to India, said ICC.

During its discussion with the Bangladesh authorities, the Indian delegation has pointed out that sectors like energy, power (both hydel and thermal), steel, communication, healthcare, fertiliser, oil & gas, limestone and forest-based industries like paper, export of plantation crops, spices, fruits, vegetables, flower, herbs and processed foods are some of the areas which can drive a stronger bilateral economic relations between the two countries.

Clothing manufacture underpins impoverished Bangladesh's industrial activity, accounting for 80 percent of overseas sales and pulling in 11 billion dollars a year.

At the start of Bangladesh's financial year in July, garment exports were up 72 percent from a year earlier, but by February growth had slowed to four percent year-on-year as orders from Western retailers evaporated.

"The whole economy can unravel if garment exports continue to slow down as many other sectors such as transport, services and construction are directly dependent on this sector," said Masato Miyazaki, an IMF adviser on Bangladesh.

The fact is, India still has a long way to go. There is a disproportionate amount of poverty (India is estimated to have one third of the world’s poor) and the health and education systems outside the major population centres are as bad as anywhere else in South Asia. How can a nation call itself a democracy when an estimated 200,000 farmers have committed suicide in the last 20 years, 20 million female foetuses have been aborted in the last 10 years, and people remain unequal due to the caste system? There is a strange mix of pride and denial amongst the Indian elite, resulting in little room for criticism and a lack of recognition that India is still struggling - it’s the image that is thriving.

No doubt, there is an inferiority complex that can be associated with any smaller nation. But Bangladesh should realise that it has a lot to offer in terms of fighting terrorism (both separatist movements in Assam and religious extremism), allowing transit to the Seven Sisters, and, of course, taking the edge off the threat posed by an increasingly unstable Pakistan. However, the lack of magnanimity shown by the current Indian government and its predecessors with regards to water sharing, the lowering of tariffs and transit to Nepal has left Bangladeshi politicians with their hands tied. To be seen as giving in to India would be tantamount to political suicide.

Sheikh Hasina said the strategically important locations of Bangladesh's two important seaports-Chittaong and Mongla- is crucial for development of the countries in this region. "We can construct a deep-sea port side by side with modernising the existing two to create opportunities for the neighbouring countries like Nepal, Bhutan, India and China, she said adding these seaports would play a significant role in the country's economy".

Sheikh Hasina put emphasis on information technology (IT) and said her government had given priority to this sector while in power in the past and encouraged setting up of radio, television channels in the private sector apart from breaking monopoly in mobile phone business which created the scopes for massive employment.

Describing huge prospects of developing waterways in the country, she said initiatives would be taken to modernise the railway and waterways side by side with the road linkages.

The new-generation internal communications are planned attuned to the fast-moving external world as the prime minister expressed her desire to build Bangladesh as a ‘Bridge between the East and the West.’   The major plans laid out by the prime minister are linking Bangladesh with the Asian Highway and the Trans-Asian Railway, constructing elevated expressway on Tongi-Gazipur-Narayanganj route, introducing commuter train service between the capital city and adjacent districts, setting up rail line from Chittagong to the resort town of Cox’s Bazar, underpass in Dhaka, creating a ring-road surrounding the city, modernising Chittagong and Mongla seaports.

Describing the Chittagong and Mongla seaports as the two big assets of the country, the premier said if the two ports could be modernised and a deep-sea port set up, potential of use of the ports by neighbouring countries like Nepal, Bhutan, India and even China will be created.   ‘We want to build up Bangladesh as the bridge between East and West hemispheres of the world,’ she told the meeting.   ‘Already we have decided to construct elevated roads on the Tongi-Gazipur-Narayanganj route and introduce commuter train service between Dhaka and its adjacent districts to ease the traffic congestion and overcrowds in the capital city,’ she said.

Hasina said country’s waterways and railways need to be developed so lower-income people can use these paths for communications at cheap rates.   The premier asked the ministry officials to think how the railways and waterways could be upgraded and made more effective means of travels.   Hasina informed the meeting about the government’s another plan to set up rail line from Chittagong to Cox’s Bazar to directly link the town of scenic beauty with the capital city, Dhaka, for cheaper movement of holidaymakers from home and abroad.

Cargo handling at Chittagong port rose 2.3 percent to record 27.6 million tonnes while container handling increased 9.3 percent to 958,020 TEUs (twenty-foot equivalent units) in 2007, from the previous year.

Shipping ministry officials say India and Myanmar repeatedly seek transit facilities from Bangladesh through Chittagong port.

Pacific Consultant International (PCI) of Japan placed a study report on feasibility of a deep seaport proposed by the Chittagong Port Authority (CPA). PCI suggested that Bangladesh should build the proposed $1.2 billion deep seaport near the country's main Chittagong port by 2055 in three phases, with the first phase completed by 2016.

We believe the ADB’s latest predictions are more credible and plausible - although it shows GDP in Bangladesh slower at 5.6% than the Bangladesh Government’s current official forecast of 6%, it is worth emphasizing that this still results in Bangladesh achieving the second fastest growth within Asia, and expanding more than India, a remarkable achievement in terms of economic resilience.

As noted by the World Bank, collapsing Global Trade demand in advanced economies has had serious implications for global trade, with 2009 expected to experience the first yearly decline in world trade volumes since 1982, the largest decline in 80 years.

The World Bank forecasts that remittance flows are estimated to have reached USD 305 billion in 2008, an increase of around 9 percent from 2007

The annual growth in the number of workers leaving Bangladesh for overseas jobs slowed sharply to 5.1 percent in 2008 compared to 118.2 percent in 2007.Among the major destinations for overseas employment, new jobs for Bangladeshi workers in Saudi Arabia fell by 35.3 percent in 2008. Kuwait has reduced hiring Bangladeshi workers since late 2006. In 2008 new jobs for Bangladeshi workers in Kuwait fell by 92.4 percent and in Bahrain by 19.8 percent.New job opportunities also declined in 2008 in Malaysia by 51.8 percent and in Brunei by 11.1 percent on economic downturn.The recession is also badly affecting new Bangladeshi job seekers in Europe. Jobs fell by 36.7 percent in Italy and 2.1 percent in the UK in 2008.Job opportunities however grew by 202.6 percent in Oman, 85.2 percent in the UAE, 68.9 percent in Qatar and 47.6 percent in Singapore.The central bank officials' forecast indicates a lower remittance inflow in the next few months as a significant number of workers returned home.

According to the latest revisions by the World Bank, India, China and Mexico retain their position as the top recipients of remittances among developing countries. The top 10 recipients list also includes Philippines, Poland, Nigeria, Romania, Egypt, Bangladesh and Pakistan.