Dhaka, Sep 17 (IANS) Bangladesh’s exports to India have registered a 21 percent increase, crossing $2.5 billion this year, said Indian High Commissioner Pinak Ranjan Chakravarty.
In the last five years, the export of goods to India from Bangladesh has gone up 480 percent, whereas Bangladesh’s overall exports have gone up only 104 percent in the same period.
Chakravarty pointed this out at a ceremony where Bangladesh and India signed a memorandum of understanding (MoU) on procedural arrangements for duty-free entry of eight million pieces of Bangladeshi apparel to India annually.
He said signing of the MoU reiterated India’s commitment to provide better market access for products from Bangladesh.
Indian Commerce Minister Kamal Nath promised Bangladesh in 2005 that his country would allow duty-free entry of eight million pieces of readymade garment products to India to boost bilateral trade, The Daily Star newspaper said Monday.
Bangladesh Commerce Secretary Feroz Ahmed said the signing of the agreement would open a new market for readymade garment producers.
“The agreement will help pave the way for reducing trade deficit between the two friendly neighbouring countries,” Ahmed said.
Bangladesh’s exports hit over $12 billion last fiscal year (2006-07) with around 75 percent of the earnings coming from the readymade garments sector.
Abdul Wahab Mian, joint secretary to the commerce ministry, and Mukta D. Tomar, Indian deputy high commissioner in Dhaka, signed the MoU on their countries’ behalf in Dhaka.