In a recent interview with the Indian weekly BusinessWorld magazine, Tata highlighted the positive attributes and opportunities that the economic environment in Bangladesh offers.

"When you go there, you realise that their industrial policy is more open than India. They do not have a history of going back on commitments," he said

The Tata Group, which is worth more than 65,000 crore rupees, has recently announced a plan to invest US$2 billion in Bangladesh as part of its on-going process to expand its manufacturing base globally. Other countries considered for expansion include South Africa and South Korea.

The areas of investment being considered for Bangladesh are in the manufacturing sectors of steel, power and fertilizers. "The areas we are looking at are good for Bangladesh. All of these are commodities or utilities that are consumable within Bangladesh" he was quoted as saying.

Tata believes that Bangladesh even has the opportunity to eventually emerge as an exporter of steel and fertilizers in the global market.

In the interview, he praised the efforts that have been put in by the Bangladeshi government when it comes to maintaining the promises made under trade agreements with foreign investors.

"There are some places where pricing commitments have actually hurt the Bangladesh Government. But they haven't changed the law; they have honored those commitments", he said.

While these portray a promising investment environment, Tata also said Bangladesh is being hurt by the present "chicken-and-egg" situation prevalent in the economy.

To highlight this problem, Tata cited the example of a plan that was recently made by Tata Company to set up a power plant in a particular location in Bangladesh with no gas.

"IFC and the World Bank have projects to put up a pipeline. But they won't put up a pipeline because there is no demand. Now if we have power plant, there would be demand and they will be willing to participate," he added.

Tata expressed confidence in the economic scenario in Bangladesh and believed that there are potential gains that can be made by investing in Bangladeshi market.