India’s willingness to invest in her neighbouring country Bangladesh is expected to open a floodgate of opportunities for the country’s SMEs to expand in the international arena.

India has already forwarded her investment proposals to Bangladesh, which are worth US$1 billion. The proposals have come from a number of Indian companies, including SMEs, and financial institutions.

The proposals include an investment offer of US$50 million from several Indian banks, leasing companies and insurance firms and US$250-million investment in power plant projects.

Remarkably, India’s effort to invest in the neighbouring country comes at a time when the India-Bangladesh Chamber of Commerce and Industry and the Confederation of Indian Industry have come to an agreement to boost Indian investment in Bangladesh in respect to the SME sector and thereby improve bilateral trade. Bangladesh has invited Indian SMEs to explore the numerous business opportunities in the country.

Incidentally, Bangladesh now has a dedicated SME department to focus on SME funding. If Indian SMEs expand their business horizon to Bangladesh, small players of both countries stand to benefit.

Shalmoli Kundu