India keen to import more RMGs to reduce trade gap

India is keen on importing more readymade garments from Bangladesh, outgoing Indian High Commissioner Rajeet Mitter said yesterday, urging Bangladeshi businessmen to seize this opportunity to reduce the widening trade gap between the two neighbours.
“India has further opened its market for Bangladesh garments and Indian businessmen are coming here to explore the opportunity even before Bangladeshi businessmen go to India,” Rajeet said during a visit to The Daily Star office.
Editor and Publisher of The Daily Star Mahfuz Anam welcomed the envoy, who is leaving Dhaka completing his nearly two years of assignment in Bangladesh.
The envoy discussed the entire range of Indo-Bangladesh relations with the senior staff members of the daily.
Rajeet dismissed concern among many Bangladeshi businessmen that India sometimes blocks import of Bangladeshi products by imposing tariff and non-tariff barriers.
"We have no deliberate attempt to stop entry of Bangladeshi items by imposing various tariff and non-tariff barriers. We are importing a lot from all over the world, so why we should not buy from Bangladesh," Rajeet observed.
Bangladesh hopes to increase its garments export to India after New Delhi signed a deal to allow duty-free access to 46 Bangladeshi garment items during Indian Prime Minister Manmohan Singh's recent visit to Dhaka.
Bangladesh's growing trade gap with India is a major concern in their bilateral ties. In 2010-11, imports from India were worth $4,570 million compared to its exports worth $512 million, according to figures from Bangladesh Bank and Export Promotion Bureau.
Bangladesh, the envoy said, will benefit economically if it allows India to use Chittagong and Mongla ports and transport its goods to India's northeastern states.
Rajeet also discounted fears that Bangladesh may loose its fledgling markets in these states if India is allowed the road transit services.
The outgoing high commissioner said Bangladesh will continue to enjoy its market in the northeastern states because its items would be cost effective.
He observed that economic activities, investment and trade will increase manifold when India will start using Chittagong and Mongla ports. Forty percent capacity of Chittagong port remain unused which India can utilise.
New Delhi will pay all the charges applicable for transit and transhipment as per the international standard, Rajeet said.
Asked about the ongoing transportation of Indian goods through Ashuganj and Akhaura, he termed it transit, and said India is paying all the fees and charges under the river protocol signed between the two countries.
Replying to a question, the envoy said the protocol will be more liberalised to allow Bangladeshi trucks into India to unload the goods carried from Ashuganj.