Singh announces duty free import of 61 items from B'desh

Dhaka, Sept 7 (PTI) Taking the trade route to cement
bilateral ties, Indian Prime Minister Manmohan Singh has
announced duty-free import of 61 items from Bangladesh that
were barred from entering India.
A majority of these items— 46 to be precise, relate to
textiles, particularly readymade garments.
Singh, who on his maiden bilateral visit to Bangladesh,
said India was "fully alive to the problem of trade imbalance
between India and Bangladesh."
Bangladesh has long complained that trade with India was
grossly unequal with India selling about USD 3 billion in
goods to Bangladesh against the latter's export of about USD
400 million business in jute, ammonia and garments.
Singh said India has embarked on a series of measures to
improve border infrastructure for trade and this will
facilitate Bangladesh's exports to India and provide it
greater opening to India and other neighbouring countries.
He said India is also addressing issues relating to
non-tariff barriers raised by Bangladesh for entry of its
goods into Indian market.
Bangladesh's request list for duty-free goods includes
all the garment items where it enjoys the advantage of cheaper
cost of production compared to India, Indian textile industry
sources said.
Bangladesh had for the last one year been pressing India
for permitting all the 61 items to be taken off the list of
protected goods India maintains under South Asian Free Trade
Agreement (SAFTA) because Dhaka is keen to sell them in a bid
to reduce a massive gap in bilateral trade.
Bangladesh's industry chambers claim they face high
Indian non-tariff barriers, including compulsory testing of
all exports, delays and poor infrastructure at border
crossings, limited transport routes and hassles in obtaining
Indian business visas, which increase business costs for them.
Earlier attempts to accede to Dhaka's request had been
stalled by the Indian textile mills, most of them located in
the Tirupur-Coimbatore-Salem-Erode in Tamil Nadu and Ludhiana
in Punjab.
D K Nair, Secretary General of Confederation Indian
Textile Industry, said India is going to be affected in a
"major" way especially in lower-end garment items if Indian
government allows the 48 apparel items free of duty.
However, officials said India was generous today in
economic dealings with Bangladesh in order to give a major
boost to the current "unprecedented" momentum in bilateral
relations to help bring about a paradigm shift during Singh's
visit. PTI PAL
MNS