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Download PDF Bangladesh and India signed a memorandum of understanding (MoU) yesterday on procedural arrangements for duty-free entry of eight million pieces of Bangladeshi apparels into India annually.
Abdul Wahab Mian, joint secretary to the commerce ministry, and Mukta D Tomar, Indian deputy high commissioner in Dhaka, signed the MoU on their countries’ behalf in Dhaka.
Feroz Ahmed, secretary to the commerce ministry and Pinak Ranjan Chakravarty, Indian high commissioner to Bangladesh, were present during the signing.
After the signing Chakravarty said India recognises the need for addressing the trade imbalance between the two countries and both sides are looking at ways and means to bridge the gap.
He said signing of the MoU reiterated India’s commitment to provide better market access for products from Bangladesh.
Mentioning the improving trend of Bangladesh-India trade relation, he said trade between the countries is growing fast and went beyond $2.5 billion this year, the number was $2.1 billion in the previous year with a growth of 21 percent.
He said exports of goods to India from Bangladesh have gone up 480 percent in the last five years, whereas Bangladesh’s global exports have gone up only 104 percent during the same period.
Feroz Ahmed said the signing of the agreement would open a new market for readymade garment producers.
“The agreement will help pave the way for reducing trade deficit between the two friendly neighbouring countries,” Feroz Ahmed said.
The Indian high commissioner said it would take less than one month for the new agreement to come into effect.
Government high officials, trade body representatives were also present on the occasion.
Indian Commerce Minister Kamal Nath in 2005 promised Bangladesh that his country would allow duty-free entry of eight million pieces of readymade garment products to India to boost bilateral trade.
Bangladesh’s exports hit over $12 billion last fiscal year (2006-07) with around 75 percent of the earnings coming from the readymade garment sector.
The country’s garment entrepreneurs are eagerly looking for alternative markets to reduce their dependency on a few markets.
September 17th, 2007 at 9:33 pm
We need to revive & reopen all closed garments factories. Will Mr.Feroz Ahmed do the commercial research to discover market of Bangladeshi Products in African countries.
Hold an exhibition in EURO African countries.
Also introduce modern design of Muslim dresses for ladies in UAE.
Thank you