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India opens duty-free door for 46 Bangladeshi garment items
Sep '11
India has finally opened its door to allow duty-free access for 46 Bangladeshi garment items in the country. The decision was taken after a summit meeting between the Prime Ministers of the two countries.

This will help Bangladesh decrease its trade deficit with India and pave the way for India becoming Bangladesh's third largest garment export destination after the US and the EU.

Bangladesh currently enjoys duty-free access of its garment products to the European Union and some Asian countries including South Korea and China.

It also presently enjoys zero-duty access for exporting 10 million pieces of garments to India a year, and had sought removal of 61 of the 480 products on India's negative list. Most of these were apparel items.

The zero-duty access for Bangladeshi garments to US$ 3 billion Indian apparel market will enable the country to capture a sizeable Indian market owing to its low labour cost.

It is expected that India's trade with Bangladesh will also increase as India exports substantial amount of raw material required for value addition to Bangladesh's garment industry.

India has the distinction of being Bangladesh's largest trading partner. In 2009-10, for which figures are available, Bangladesh imported US$ 3,213.7 million worth of Indian goods, while its exports were mere US$ 304.63 million.

Fibre2fashion News Desk - India

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