India’s exports drop, Bangladesh’s soar on duty-free market access: Shringla

The Indian high commissioner in Dhaka has said Bangladesh’s businesses have started getting the benefits of duty-free market access.

Harsh Vardhan Shringla said on Monday that Indian exports to Bangladesh declined in the last two years while Bangladesh’s exports increased.

“It’s a sign of increasing competitiveness,” he said, speaking at the Metropolitan Chamber of Commerce and Industry’s (MCCI) third quarterly luncheon meeting.

He presented the latest figure at a time when the businesses complain of bottlenecks for exporting products despite getting duty-free access to the Indian market.

The two-way trade has crossed $6 billion mark, though it is heavily tilted towards India.

The high commissioner said India’s exports declined by 3.6 percent in 2014-2015 while Bangladesh’s exports saw an increase of 15.4 percent.

He said figures for India’s exports for this year between July 2015 and March 2016 have declined by 4.36 percent compared with the same period in 2014-2015.

In that period, July 2015 and March 2016, Bangladesh’s exports saw an increase of 30.8 percent.

Shringla said since 2001, Bangladesh’s exports to India have grown ten times and India’s exports nearly six fold.

“Main export items from India are raw materials, which serve as critical inputs for the Bangladeshi industry.”

For example, he said, cotton (all types) constituted 22.5 percent of India’s total exports in 2014-2015, which is used by the clothing industry.

In 2011, India announced duty- and quota-free access to all tariff lines, except tobacco and alcohol, for Bangladeshi goods.

“This presents a tremendous opportunity for Bangladeshi companies, which should make full use of this opening to the Indian market,” Shringla said, adding that India has also made the visa regime easier for businesses.

Since 2015, he said 7,000 Bangladesh businessmen got five-year multiple entries.

He suggested that the government draw more Indian investment for increasing Bangladesh’s exports, and urged it to remove the bottlenecks the investors face.

Difficulties in sending back their salaries, family members reporting to police station and not getting visa as required are some of the problems the investors face, he said.

The high commissioner highlighted the “multi-faceted” cooperation between the countries and said they were aimed at building “an enduring and sustainable” relations not only between the governments, but also between the people.

Shringla offered condolences for the victims of the July 1 terror attack and reiterated India’s commitment to stand by Bangladesh to fight off terrorism.

MCCI President Syed Nasim Manzur also spoke at the meeting.