Tata's investment plan

By Zahedul Amin, IBA, DU
28 March 2006, 18:00 PM
The government of Bangladesh is to take a vital decision regarding the investment of Tata, which may well have a profound impact on the economy.

Recently, renowned economist Wahiduddin Mahmud submitted his report to BOI. This report contains vital issues that the government must address before an agreement could be reached.

First and foremost is the issue of gas price. Tata is actually investing here to take advantage of availability of gas and a huge market. So they need to pay the proper price if fairness is to be endured in the deal. The government of Bangladesh should not compromise regarding the price of gas.

On a positive note, investment by Tata may send a positive signal abroad.

As a result, flow of FDI is likely to soar up in the near future. Thus benefiting the economy in the long run. There are also additional benefits in the form of improvement of balance of payment and job creation.

Investment by Tata may also help to mend ties with India.