India on Sunday indicated it may soon allow foreign direct investment from Bangladesh on a selective basis and after security checks, with a view to giving a boost to the bilateral economic relations.
"It is true that presently India prohibits FDI from Pakistan and Bangladesh for security considerations. We have been reviewing these restrictions with a view to enabling FDI from Bangladesh into India on a case-to-case basis, subject to security clearance," Minister of State for Commerce Jairam Ramesh said in Dhaka.
"Hopefully Bangladesh businessmen will receive some good news in this regard soon," an official statement quoted him as saying at the launch of India-Bangladesh Chamber of Commerce and Industry. The chamber aims at increasing collaboration between the two countries.
Ramesh said Bangladesh businessmen were keen to invest in pharma, paper, food processing and textiles sectors in India.
"Such a blanket ban makes no sense, especially since Indian companies themselves want to invest in Pakistan and Bangladesh," he added.
Major investment proposals by the Tatas are pending approval of the Bangladeshi government.
He said the two countries would also be signing a mutual recognition agreement soon, enabling them to recognise each other's conformity assessments.
Six laboratories in Bangladesh have been recognised for testing and certifying textiles and consumer products. An Indian delegation would visit Dhaka in August to identify laboratories which can be accredited for testing in biscuits, cement and processed foods. Testing facilities would also be set up for hilsa fish at Petrapole.