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India wants to accord Bangladesh MFN status

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India wants to accord Bangladesh the 'most preferred nation' (MFN) status for giving a boost to cross-border trade activities, an Indian newspaper said on Saturday.

It would also try to ensure capital flows to Bangladesh for business, The Times of India newspaper said, quoting home minister P Chidambaram.

"Both the countries can join hands in making this part of the world a hub of business activities," it quoted Chidambaram as saying.

"Bangladesh is blessed with natural resources, especially natural gas, and India is blessed with entrepreneurs and capital. By joining hands, so much business can be created on both sides of the border," Chidambaram said.

His comment comes amid many Bangladeshi critics and opposition parties saying India just wants to turn Bangladesh into its market giving very little access to the smaller and Muslim-majority neighbour to enter India with its products.

Chidambaram said it was important that businessmen look upon Bangladesh and India as one market where "goods and services can be produced, traded and exchanged".

"That is why we are very keen to gift Bangladesh the most preferred nation status for trade across the border … (so that) trade between the two countries takes place almost tariff free. We should reach out to Bangladesh," Chidambaram added.

Addressing the Northeast Business Summit, he said on Friday since India's economy was many times bigger than the economy of Bangladesh, it was New Delhi's responsibility to give access to goods and services from Dhaka.

"It is India's responsibility to ensure that capital flows from India to Bangladesh to start businesses," he said.

Praising prime minister Sheikh Hasina, the Indian home minister said India today has the best of relationship with Bangladesh, thanks to the vision and statesmanship of the prime minister.

"I want to pay tribute to the vision and statesmanship of prime minister Sheikh Hasina. India and Bangladesh are today closer than ever before. We are perhaps today as close as the day on which Bangladesh was liberated," he said.

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