An Indian minister assured Bangladesh on Sunday his government was ready to remove some barriers to imports from Bangladesh to reduce a yawning trade gap but asked for Bangladesh to make changes in return.
Indian State Minister for Commerce Jairam Ramesh offered the olive branch at an India-Bangladesh trade meeting in Dhaka, attended by both Bangladeshi and Indian business leaders and opened by President Iajuddin Ahmed.
Currently the annual volume of trade between the two South Asian neighbours is more than $2.0 billion, which includes exports from Bangladesh of $250 million to $270 million.
Bangladeshi government and business leaders have blamed the gap largely on tariff and non-tariff barriers on exports imposed by India and the lack of market access for other reasons.
Abdul Matlub Ahmed, president of the India-Bangladesh Chamber of Commerce and Industry (IBCCI), said Bangladesh's exports to India would rise to $1 billion annually if New Delhi removed the barriers.
"The barriers stand in the way of our exports ... these are mainly testing requirements, inadequate physical facilities at land customs stations of India, special labelling requirements, mandatory standards, banking difficulties, chemical tests (of goods) etc," he said.
Minister Ramesh said, "India is firmly committed to seeing and assisting in the emergence of an economically strong and prosperous Bangladesh. We have set up a task force to remove those barriers that distort free and fair trade."
"India must be prepared to give more than what she gets," Ramesh said.
He said the Bureau of Indian Standards had already signed a deal with its Bangladesh counterparangladesh "for purposes of testing and certification in textiles and consumer products".
The Indian minister said India had offered to buy 8 million items of garments every year from Bangladesh, which at present is on the list of sensitive items.