Tata coming in a big way

One can read more positive signs, a plenty of them, into the prospective event. First of all, it is a potential path-breaker in garnering massive doses of private investment for Bangladesh. Tata's initiative could enhance confidence in the private sector of not only India but also that of other countries to funnel more FDI into Bangladesh. That way it would have a multiplier effect.

Also, it is inspiring to note that Tata's new roadmap for investment destinations include Bangladesh among other countries such as South Korea, Singapore and South Africa.

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Such a big investment by the prestigious Tata Group in Bangladesh will hopefully contribute its mite in bringing about equitable trade between the two neighbouring countries in whatever way possible. The trade balance is currently hugely tilted towards India. At least, the Tata initiative promises to generate some buy-back arrangements in India.

In the long run, stronger bilateral economic relations are destined to impact most positively on Indo-Bangla relations.

We have a word of caution, though. In our highly enthusiastic welcome to Tata's investment package, we must bear in mind the fact that the massive investment plan will hit the ground contingent upon a guarantee given to the Indian corporate giant for continued supply of gas at concessional price for 20 years to Tata. Let's not forget, a wrong and unrealistic commitment made in the KAFCO deal had placed a burden on the nation it was hard put to carry. So, in negotiating gas pricing and supply arrangements with Tata, we need to keep the national interest upper most in mind while allowing for the profitability that Tata must enjoy as an incentive to be making the investment up front. There need not be any conflict of interests.

The goal ought to be a win-win deal for both sides. Only then the investment will bloom into many flowers.