India asks Bangladesh to list it as a textiles supplier

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.

Bangladesh, on its part, asked India to allow electronics and motorcycles to be exported to the country through border points in Northeast India. 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.