India has identified Mongla as one of the potential locations for establishing a special economic zone for Indian companies.

‘A feasibility study on Mongla SEZ is going on, and will be completed soon’, said Indian High Commissioner to Bangladesh Harsh Vardhan Shringla while addressing a function at the Khulna Chamber of Commerce and Industry on Thursday, reports UNB.

Recognising Khulna’s importance in Bangladesh-India relationship, India has decided to open an Assistant High Commission in the city.

‘We hope to have this set up at the earliest possible once the formalities are completed’, said the High Commissioner.

Shringla said they have also offered to partner Bangladesh in modernising the infrastructure at Mongla Port, and construct the Khan Jahan Ali Airport, named after the revered 15th century Sufi Saint from this region.

He said a number of Indian companies have also set up their plants in the Khulna division — Tata Motors has an assembly plant in Jessore; Hero MotoCorp is investing around US$ 30 million to set up a motorcycle manufacturing plant in Jessore.

Quoting media reports, the diplomat said large scale industries and private investment have seen a tremendous increase in Khulna division with around US$ 450 million invested over the last 10 years.

The investments were made in sectors ranging from shrimp farming and processing, and jute and textiles to pharmaceuticals and fertilizers.

‘India’s links with Khulna are significant. Not only it is the city in Bangladesh located closest to Kolkata, it also has had a long history of close cultural and business ties with the western part of the then Bengal’, the envoy said.

Shringla said India-Bangladesh trade and commercial ties are on an upward trajectory on Thursday.

‘Our bilateral trade has registered a substantial increase over the last few years.’

Since 2001-02, Bangladesh’s exports to India grew 10 times and India’s exports (and the total trade) grew nearly six fold. Total India-Bangladesh trade stood at US$ 6.14 billion in 2015-16.

However, while Bangladesh’s exports to India have seen substantial increase in the last two years, Indian exports to Bangladesh have declined. In 2015-16, Bangladesh exports to India increased by 30.8 percent to US$ 689.62 million and India exports declined by 6.3 percent, he claimed.

Companies from both India and Bangladesh are also exploring new opportunities for investing and setting up joint ventures in each other’s country.   

Shringla said Khulna can also serve as a hub for promoting tourism to the Sunderbans and to other historical sites in the vicinity, particularly the Mosque City of Bagerhat - a Unesco World Heritage Site. ‘We hope to sign an agreement that provides for greater exchanges in the tourism sector, including the visit of cruise ships.’

He said the ongoing infrastructure projects in the Khulna region will also open up new opportunities for investment.  

The trial run of the Kolkata-Khulna bus service was completed in August 2016 and Kolkata-Khulna passenger train is also expected to be launched soon, said the Indian High Commissioner.

Alhaz Talukder Abdul Khalek, MP, Alhaz Mizanur Rahman Mizan, MP, President of the Khulna Chamber of Commerce and Industry Kazi Aminul Haq, Divisional Commissioner, Khulna Abdus Samad, DIG, Khulna Monir-Uz-Zaman and Police Commissioner, Khulna Nibas Chandra Mazhi were present.