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India has asked Bangladesh to list it as a textile raw material sourcing country so that Bangladeshi garment exporters buying yarn from India continue to get benefits under the European Union’s duty exemption scheme.
Commerce and Industry Minister Anand Sharma, in his bilateral meeting with his Bangladeshi counterpart Ghulam Muhammed Quader, pointed out that India should be notified as a supplier of inputs to ensure that Bangladeshi garment exporters to EU do not hesitate to source yarn and other raw materials from the country.
The EU gives duty preference to garments and other textile items from Bangladesh under the Generalised System of Preferences scheme subject to some sourcing conditions. The scheme was relaxed some time back to allow exporters benefiting from the scheme from countries that are notified as sourcing countries by the Government.
“Once India is notified as a sourcing country, Bangladeshi exporters to the EU can happily source raw materials from India as they would not get disqualified under the GSP scheme,” a Commerce Department official to Business Line .
The Bangladeshi Minister assured Sharma that the country would consider the request positively, the official added. The two ministers met at the CII Agra Summit on Tuesday.
Bangladesh, on its part, asked India to allow electronics and motorcycles to be exported to the country through border points in North-East India.
“Our industry has been getting orders for motorcycles and electronic items including televisions. However, because these are allowed only from two points into India, it is not cost-effective. Borders across North-Eastern India need to be opened for these goods,” Quader told Business Line .
The two sides also discussed ways to increase bilateral trade. Bangladesh urged India to identify ways in which the huge trade imbalance between the two countries is set-off to some extent.
India exported goods worth $3.7 billion to Bangladesh in 2011-12 and imported goods worth $584 million.
amiti.sen@thehindu.co.in
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