INDIA, BANGLADESH TO CONSIDER STRATEGIC ALLIANCE IN THE TEXTILE SECTOR IN POST-MFA SCENARIO
BANGLADESH DELEGATION MEETS ELANGOVAN
Date : 13 Jul 2004
Location : New Delhi
India and Bangladesh have discussed the desirability of forming strategic alliances in the textile sector so as to fully realise the potential in the post-MFA (Multi-Fibre Arrangement) scenario. The MFA comes to end on 1st January 2005. This was indicated in a meeting between Mr. Mahmudur Rahman, Executive Chairman of the Board of Investment, Bangladesh and Shri E.V.K.S. Elangovan, Minister of State for Commerce and Industry, here today. Mr. Hemayetuddin, Bangladesh High Commissioner and the President of Dhaka Chambers were also present at the meeting along with a high-powered delegation from Bangladesh.
During the meeting, Mr. Rahman said that India has a very strong primary textile sector whereas Bangladesh has strength in the clothing and garment sector. "If both the countries have alliance in textile sector, then it will be a win-win situation for us", he said. The Bangladesh side raised the issue of difficulties in exporting cement to India on account of elaborate testing procedures for meeting the prescribed standards. Shri Elangovan assured them that India would help Bangladesh in upgrading their technical capacity and said that MRA (Mutual Recognition Arrangement) should be pursued by both the sides in the spirit of cooperation. Various other issues required to be addressed for enhancing trade and investment flows between the two countries were also discussed.
Bangladesh is India’s largest trading partner in the region. The bilateral trade has increased from Rs. 810 crore in 1991-92 to Rs. 6917.37 crore in 2003-04 (April-February). India’s exports to Bangladesh increased by 40.07% during April-February 2003-04 amounting to Rs. 6687.24 crore as compared to Rs. 4774.26 crore in the same period in the previous year.