Duty Free Export to India Now 10 Million

India has agreed to increase the duty-free quota of export limit of Bangladesh's garment items to 10 million pieces from present eight million, Commerce Minister Faruk Khan said on April 24, 2011.

The minister said this at a press conference at his ministry after a meeting with his Indian counterpart Anand Sharma.

According to the agreement signed between the two countries, India will also provide Bangladesh with 3 lakh tonnes of rice and 2 lakh tonnes of wheat, Faruk Khan said.

UNB adds: India is ready to pay transit charges in line with 'internationally-established' norms, visiting Indian Commerce Minister Anand Sharma said here on April 24, 2011.

Sharma, who is on a two-visit here, gave the assurance at a joint press conference at the conference room of Commerce Ministry, after a meeting with his Bangladesh counterpart Faruk Khan.

India is also eyeing US$ 3.5 billion investment in Bangladesh and this investment in the private sector coupled with transit facilities will help increase job creation and value addition, Sharma said.

"The US$ 3.5 billion investment in the private sector is in the pipeline," Sharma said, adding that the investment will be seen in telecommunications, pharmaceuticals and food processing sectors.

Sharma also informed that the pledged 3 lakh metric tonnes of rice and 2 lakh metric tonnes of wheat would soon be delivered to Bangladesh.

On duty-free access of 61 Bangladeshi products to the Indian market, Sharma said: "We're actively considering it."

Currently 480 items are on India's negative list. Last year, Dhaka demanded the removal of 61 products, mostly textile items (47), from the negative list.

Commerce Minister Faruk Khan said the Indian government has agreed to increase export quota of RMG to 10 million pieces from the existing 8 million pieces quota and the issue of duty-free access of 61 Bangladeshi products to the Indian market is under active consideration.

At present, Bangladesh enjoys duty-free access of only 8.0 million pieces of RMG each year under a bilateral trade arrangement between the two countries.

On cotton import quota, Faruk Khan said: "They'll see their volume of domestic production. Then they'll take decision on increasing quota for Bangladesh."

About the formal opening of border haat, he said both parties have agreed to open the border haat formally in June. "The infrastructure of such haat is being built."

Faruk Khan revealed they also had discussions on BSTI certification of Bangladeshi goods. "India has already accepted the BSTI certification on 15 Bangladeshi products. We've requested to add more productions."

"We've discussed on various issues to make economic ties stronger. I think the discussion has been fruitful."

Asked about transit issue, Faruk Khan said: "As things are yet to be finalised on the transit issue, nothing is there to let you know."