ADDRESS BY H.E.MRS. VEENA SIKRI, HIGH COMMISSIONER OF INDIA AT THE INAUGURAL CEREMONY OF THE “INDIAN COTTON YARN AND FABRIC SHOW, 2006” ORGANIZED BY TEXPROCIL. ON JULY 9, 2006 IN DHAKA
1. It's my pleasure to participate in the inaugural ceremony of the Indian Cotton Yarn and Fabric Show, 2006 organised by the Cotton Textiles Export Promotion Council of India popularly known as TEXPROCIL.
2. The Cotton Yarn and Fabric Show - 2006, showcases the latest trends and design in the cotton textile sector. TEXPROCIL has brought in some of the renowned manufacturers and exporters of the Indian cotton textile industry. I am sure the Bangladeshi textile industry will make full use of this opportunity to strengthen their linkages with the Indian Textile industry in order that we may together face and overcome the growing challenges of competitiveness, modernization and marketing in the global textile industry.
3. The Indian Textile Industry is amongst the largest segments of the Indian economy accounting for over 14% of our industrial production, 9% of GDP, and providing employment to around 35 million people, the largest sector in terms of employment after the agriculture sector. It has also earned the distinction of being the highest foreign exchange earner for the country, accounting for around 16% of India 's Export Earnings. The industry has witnessed a phenomenal growth during the last decade and a half in terms of spindleage, yarn production, output of cloth and exports of fabrics and made-ups.
4. India is today the world's 2 nd largest exporter of cotton textiles with annual exports to the tune of US$ 4 billion. India is the 3 rd largest producer of Cotton, the 2 nd largest supplier of home textiles, the 4 th largest producer of Staple Fibre and 2 nd largest producer of Filament Yarn.
5. Readymade garments are today the single largest foreign exchange earner for Bangladesh . The import of yarn and fabric from India of international quality, at competitive prices and with very low transport costs, have played a significant role in maintaining the success and high growth rates in the export of the finished products from Bangladesh. Bangladesh is the 2 nd largest market for Indian cotton yarn and the 3 rd largest market for Indian cotton fabrics.
6. There are, therefore, important synergies and complementarities between India and Bangladesh in this sector. We need to develop this relationship further. Barriers coming in the way of further improvement of trade ties between the textile industries of India and Bangladesh need to be dismantled by mutual agreement at the earliest opportunity.
7. After the India-Bangladesh bilateral talks held in Kathmandu on 30 th November 2005 on the sidelines of the SAFTA negotiations, India has agreed, as a package deal to provide TRQ of eight million pieces of garments from Bangladesh , for their duty free import into India . This was contingent on the Bangladesh Government lifting the ban on import of yarn through land route from India into Bangladesh . When this ban was lifted earlier this year, this was done only partially for 100% export oriented units. Our exporters have also noticed that there is substantially increased paper work in effecting imports of yarn into Bangladesh through the land route. We hope that these difficulties will soon be ameliorated and the ban on import of yarn through the land route will soon be fully lifted.
8. The Government of India is waiting for complete lifting of ann on import of yarn through land route, before it could notify the TRQ. This would lead to substantial increase of exports from Bangladesh to India and would help in reducing the adverse trade balance in our bilateral trade.
9. India is aware of Bangladesh 's concerns over the huge trade tap between India and Bangladesh . We have taken several measures in recent years to sincerely address these concerns. I have just referred to Government of India's decision regarding duty free imports of readymade garments from Bangladesh to India . In addition, India has decided to go beyond what has been agreed under SAFTA. India would bring the customs duty to zero on 4,200 tariff lines from Bangladesh in the next three years instead of eight years as provided for under SAFTA.
10. Just two days ago, the Bangladesh India Joint Working Group on Trade met in Agartala (Tripura) and reviewed the situation once again. They have focused on infrastructural deficiencies as among the most important inhibitors in further progressing our bilateral trade relations.
11. There has been one more positive and important development. In March 2006, during the visit of Hon'ble Prime Minister of Bangladesh to India , the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) and Federation of Indian Chambers of Commerce and Industry (FICCI) have formed Task Forces on important aspects such as Bilateral Trade, Raising Indian investments in Bangladesh , Trade Related Infrastructure, Removal of Trade Disputes and Non-Tariff Barriers. This business-to-business approach to finding mutually agreed solutions has been welcomed by the business communities of both India and Bangladesh and has yielded rich results. Already these Task Forces have met twice and have suggested an agreed series of measures that would help in reducing barriers to trade, in addressing the causes for huge amount of illegal trade between India and Bangladesh, and in enabling safer, faster and smoother flow of trade by making better use of all available modes of transport i.e. road, rail and river, as well as through encouraging containerization in our bilateral trade. I thank the two Chambers for their positive approach in the matter.
12. Indeed, a multi-modal approach to Bangladesh India trade is crucial to meet the needs of both our countries. I visited Mongla Port last month. I feel that Mongla Port can become an important hub, together with Haldia Port , for meeting the transportation needs of our bilateral trade. I am prepared to get a team from India to visit Bangladesh with a view to exploring the possibilities of starting regular cargo services between Haldia and Mongla ports as well as between Haldia and Chittagong ports.
13. I thank TEXPROCIL for choosing Dhaka as the venue for their exhibition. I thank Hon'ble Commerce Minister of Bangladesh for his kind presence at this exhibition as our Chief Guest. I also thank Chairman Patodia for coming to Dhaka on this occasion and to you all for taking part in this inaugural ceremony.
14. I am sure that this exhibition will be a great success in bringing the textile industries of India and Bangladesh as well as our dynamic business communities closer to each other in the spirit of trust, mutual benefit and friendship.
Thank you.
***