India, Bangladesh keen on joint ventures across sectors

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: since July 2006. One year ahead of schedule, India agreed to reduce duty on imports from Least Developed Countries (LDCs) to zero from January 2008, barring products under its sensitive list. In March 2008, the commerce and industry minister, Kamal Nath announced that India was considering reducing its sensitive list for LDCs from the present level of 744 products to 500.

Besides, India’s decision to import eight million pieces of apparel from Bangladesh in one calendar year without any duty and conditionality of sourcing of fabric or port restrictions would go a long way in providing improved market access for its north-eastern neighbor. A MoU on procedural arrangements was signed in Dhaka in September 2007 and customs notification issued by Indian Department of Revenue on April 21, 2008.

As per a statement made by the Union minister of state for commerce and industry, Jairam Ramesh, this would enable Bangladesh to earn an additional $ 50-70 million a year. Bangladesh’s long-standing demand for improved market access to the Indian market has centered on its perceived high incidence of tariff, non-tariff and para-tariff barriers on its exportable products. A notable development to initiate action on this aspect has been the signing of MoU between Bureau of Industrial Standards (BIS) and Bangladesh Standards Institution (BSTI) in June 2007.

According to MoU provisions, BSTI and BIS would standardise quality controls to allow BSTI to perform tests and certify Bangladeshi goods export to India in contrast to the present practice of testing such goods by BIS laboratories in India.

In November 2007, Government of India has removed the prohibition on investment into India by citizens or entities of Bangladesh. A total of 181 foreign direct investment and joint-venture investment proposals from India worth $435 million have been registered with the Board of Investment in Bangladesh in sectors such as agro industry, textiles, chemicals, and engineering industries.