Indian economic zone Bangladesh: Bangladesh has officially canceled the Indian Economic Zone project in Mirsarai, Chattogram. The decision was taken after a high-level meeting of the Bangladesh Economic Zone Authority (BEZA) Board, chaired by Chief Advisor Mohammad Yunus, and also took inputs from Bangladesh Investment Development Authority (BIDA).
The government will now use the land allotted for this project to create a defense industrial zone to promote local military production. Officials say that this decision was taken after former Prime Minister Sheikh Hasina’s virtual address to the media in New Delhi. This decision may further sour India-Bangladesh relations.
What is Indian Economic Zone in Bangladesh?
The Indian Economic Zone was being seen as a symbol of economic cooperation between India and Bangladesh. The project, signed under a Memorandum of Understanding in 2015, planned to develop hundreds of acres in Mirsharai and another site in Mangla in Bagerhat under Bangladesh’s National Special Economic Zone framework. India also provided credit lines at concessional rates to support this project.
The objective of this project was to strengthen industrial cooperation and economic integration between the two countries. However, the Yunus government has claimed that despite repeated requests to approve the international tender and expedite the work, no significant development has taken place. The Indian Economic Zone was considered a flagship project for stronger cooperation and economic partnership between the two countries and was expected to generate considerable employment in Bangladesh. Now that this project has been cancelled, the hopes of creating employment on a large scale have diminished, due to which many people in Bangladesh are disappointed.
What is called economic zone?
Economic Zone is an area within the geographical boundaries of a country, where various types of tax exemptions are available for setting up factories or manufacturing units. These include income tax, excise duty and custom duty. Its objective is to attract foreign investment, increase employment and strengthen the economic condition of our country through bilateral trade.
A lot of emphasis is also given on infrastructure in the economic zone so that foreign companies setting up plants or factories here do not face any problems. Due to increase in production in the economic zone, exports will also increase, which will boost the country’s economy.
When Prime Minister Narendra Modi visited Dhaka in June 2015, he tried to create an economic zone in Bangladesh especially for Indian investors. The then Bangladeshi Prime Minister Sheikh Hasina agreed to this proposal and both of them signed a joint declaration.
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