Bangladesh got duty-free access of 46 textile items to Indian market, ushering in a new horizon in Dhaka-Delhi trade.
"India finalised duty-free 46 textile items' access to its market. Bangladesh will benefit enormously as it will help narrow down trade gap between the two countries," Commerce Minister Lt Col (retd) Faruk Khan told BSS.
The decision came from an official meeting between Bangladesh Cabinet members and four chief ministers of Indian states at Sonargaon Hotel Tuesday.
Currently, 480 items are on India's negative list. Last year, Dhaka demanded the removal of 61 products, mostly textile items (46), from the list.
According to Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), India has 3.0 billion US dollars apparel market size in which Bangladesh can easily capture a large portion because of its cheap labour cost benefit.
Indian trade with Bangladesh will also be increased as Bangladesh imports huge amount of raw materials from India for value-addition, according to the country's apex trade body.
India is Bangladesh's single largest trading partner. Bangladesh's imports from India in 2009-10 were 3213.70 million US dollars against its exports of just $304.63m.