Under the South Asian Free Trade Area Agreement (SAFTA) India plans to propose a zero tariffs on positive list of products for the least developed countries of SAARC, including Bangladesh, Bhutan, Maldives and Nepal.
This step, expected to be implemented by 2008, is an attempt by the Government to promote trade with smaller countries.
However, among the 800-odd textile items, more than half are in the negative list where tariff concessions cannot be extended, as it would hurt the interest of the domestic textile and clothing industries.
As apparel will be under negative list, Bangladesh garment industry will not be able to grab a bigger share in the vast Indian market.