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Home / Knowledge / News / Textiles / Zero duty market access for RMG from Bangladesh & Sri Lanka

Zero duty market access for RMG from Bangladesh & Sri Lanka

24
Apr '08

India is a signatory to the Agreement on South Asian Free Trade Area (SAFTA), which became operational from 1st July 2006.

SAFTA envisages duty reduction by member countries ranging from zero to five percent within ten years, excluding items in the sensitive list.

In pursuance of commitment made during SAFTA negotiations, India will provide zero duty market access for 8 million pieces of garments annually from Bangladesh, operationalized through a Memorandum of Understanding (MoU) signed between the Governments of India and Bangladesh on 16.9.2007.

It has also been decided to provide zero duty market access for 3 million pieces of garments annually from Sri Lanka under the India-Sri Lanka Free Trade Area without any sourcing conditions and port restrictions in terms of an MoU signed on 5.10.2007 between the Governments of India and Sri Lanka.

The above mentioned quantities represent a small percentage of the domestic consumption, and are unlikely to adversely affect the domestic garment industry.

Press Information Bureau Government of India

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