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Bangladeshi clothing exports to India peak in 2011
Aug '11
Bangladeshi clothing exports to India have peaked in 2011 with the duty-free export quota of 10 million apparel pieces sanctioned for export to India during the current year getting exhausted within the first seven months of current calendar year.

Till 2010, India allowed duty-free import of only eight million pieces of apparels from Bangladesh, but during Commerce Minister Anand Sharma's visit to Bangladesh in April 2010, the quota was increased to 10 million pieces.

Last year, Bangladesh exported eight million pieces of apparels to India. The country exported around 4.5 million pieces of apparel items to India during 2009 and 3.5 million during 2008.

The early exhaustion of export quota indicates that Bangladeshi apparels are greatly in demand in the Indian market. Hence, the Government is trying to increase duty-free export quota and is also trying to earn zero-duty access for several products to India.

Bangladeshi apparel producers still have pending orders from India for another 10.05 million pieces of apparels, but as the export quota has already exhausted they are unable to execute these orders.

So, some of the leading apparel producers in the country are trying to persuade the Government to earn enhanced quota for apparel exports to India.

Simultaneously, Dhaka is also exerting to earn zero-duty access to India for other 61 items which includes 44 apparel products. If these products are granted access, increase in quota would no more be required.

As indicated by the data, exports from Bangladesh to India grew from 2009-10's US$ 304 million to US$ 512 during fiscal 2010-11. Jute and jute good exports too, together with knit and woven items, registered a rise during last fiscal.

The country reaped US$ 18.7 billion from apparel exports during the period.

Fibre2fashion News Desk - India

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