London, Apr. 9 : The recent liberalisation of RBI removing the ban on Foreign Direct Investment (FDI) from Bangladesh may lead towards a stable and secure trade relation between India and Bangladesh. India''s decision to welcome investment from Bangladesh also, raises an expectation that foreign trade policies of both the countries will get further liberalized.

The India-Bangladesh border stretches 4,096 kilometer. The two countries are geographically as also culturally linked to each other. It is interesting to note that roughly 161 million people of Bangladesh depend on number of articles of day to day use produced in India. With the recent announcement by RBI the residents of Bangladesh will now have an opportunity to play a participative role in strengthening the economic activity in India as also in improving the supply side of the goods required by them.

Recent Steps taken by India in FDI with Bangladesh

The permission to make foreign direct investments in India by individuals and companies resident in Bangladesh, in the shares of Indian companies is a welcome development and is likely to be beneficial for both the countries.

As per the current FDI framework, a person who is a citizen of Bangladesh or an entity incorporated in Bangladesh may, with the prior approval of the Foreign Investment Promotion Board (FIPB) of the Government of India (GOI), purchase shares and convertible debentures of an Indian company under Foreign Direct Investment Scheme, subject to the terms and conditions specified in the FEMA, which is subject to amendment from time to time.

Recent Deal after the removal of ban on Bangladesh FDI India Welcomes FDI from Bangladesh

The recent liberalisation of RBI removing the ban on Foreign Direct Investment (FDI) from Bangladesh may lead towards a stable and secure trade relation between India and Bangladesh. India''s decision to welcome investment from Bangladesh also, raises an expectation that foreign trade policies of both the countries will get further liberalized.

The India-Bangladesh border stretches 4,096 kilometer. The two countries are geographically as also culturally linked to each other. It is interesting to note that roughly 161 million people of Bangladesh depend on number of articles of day to day use produced in India. With the recent announcement by RBI the residents of Bangladesh will now have an opportunity to play a participative role in strengthening the economic activity in India as also in improving the supply side of the goods required by them. (ANI)