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PM urged to push for duty-free RMG exports to India
Sep '11
Bangladeshi Prime Minister Sheikh Hasina has been requested by the readymade garment (RMG) producers to carry forward the talks to earn duty-free access for export of RMG items to India, during the two-day visit of Indian Prime Minister Manmohan Singh to Dhaka beginning September 6.

The Indian PM is likely to sign around 8-10 protocols and Memorandum of Understanding during the visit.

Bangladeshi RMG exports will grow manifold if the Indian Government permits Bangladeshi garment producers to duty and quota-free export their goods to India.

Presently, India does not allow duty-free access to 480 Bangladeshi products, 154 of which are RMG items including 76 woven and 78 knitwear items.

Bangladeshi exports to India grew by around 100 percent to Tk 10.77 billion during the first quarter of current calendar year as compared to export of Tk 5.48 billion during the corresponding period last year.

This rise in exports was owing to India's decision of raising the earlier limit of eight million pieces of duty-free import to 10 million apparel pieces from the current year.

In India, there are around 450 million people belonging to the middleclass, with an estimated domestic apparel market size of US$ 30 billion.

Even if Bangladesh could cater to 10 percent of India's overall demand it would come to three billion USD and this could help bring down the trade gap.

The Bangladeshi RMG exporters are capable of meeting the demands of Indian customers by offering superior quality products at affordable prices. Moreover, the geographical location of Bangladesh also facilitates mutual trade between the two nations.

Fibre2fashion News Desk - India

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