India urged to import BD goods thru' new routes

[Hammer-fist]

India urged to import BD goods thru' new routes

Published : Friday, 15 February 2013


Nizam Ahmed

Bangladesh has requested India to import motorbikes and electronic goods manufactured in the country through new land routes for its northeastern states, officials said on Thursday.

India so long allowed import of motorbikes, electronic goods including air-conditioners and refrigerators and accessories through Pertrapole in Paschimbaga, on the opposite side of Benapole in Jessore.

Meanwhile, the demand for such Bangladeshi products has been on the rise in the seven northeastern states of India, where the import costs should have been much lower in case the items are imported through border points in eastern Bangladesh, traders said.

"We have placed the request to India last month as the opening of new entry points is likely to boost exports of the items to the northeastern region of the neighbouring country," a senior official at the ministry of commerce (MoC) told the FE.

The Indian side is actively considering the request and may come up with a decision in this regard soon, because the proposal, if accepted, will drastically reduce the import costs for Indian importers, the official said

India has been allowing duty-free and quota-free access to Bangladeshi export products except liquor and tobacco since late 2011.

Since then demand for different Bangladeshi products, mainly ready-made garments, has been on the rise across India.

But India continued to allow motorbikes and electronic goods only from the Petrapole land customs station in Paschimbanga while the demand for these were much in the northeastern states.

However, the official at the MoC could not give immediately the volume of imports of Bangladeshi motorbikes and electronics goods in India.

But he presumed that the export earning from India on the items are rising substantially.

Importers in the northeastern region of India have to bear extra costs in bringing the items imported from Bangladesh, from Petrapole to northeastern states traversing a long distance.

The distance between Dhaka and the border along the four Indian northeastern states are within 150 kilometre (km) to 350 km, while the distance between Petrapole to Agartala, state capital of Tripura, is more than 1,600 km.

Four northeastern states of Assam, Meghalaya, Tripura and Mizoram have borders with Bangladesh.

According to the traders, high cost of import of the items from Bangladesh to northeastern states through Paschimabga makes exports unviable.

Several Bangladeshi companies received orders from India for motorcycles, refrigerators and air-conditioners at the Guwahati international trade fair last year, traders said.

Officials hope that local manufactures of motorbikes and electronic goods in India may not oppose more imports of the items from Bangladesh as the local production was much less than demand.

Bilateral trade between Bangladesh and India rose nearly 20 per cent to more than US$ 4.50 billion in the fiscal year (FY) 2011-12 following reduction of sensitive lists by the relevant authorities in both the countries in late 2011.

The both-way trade is expected to cross $ 5.0 billion-mark at the end of the ongoing FY 2012-13, as exports from Bangladesh to India are growing gradually, MoC officials said.

The bilateral trade between the two countries was worth around $ 3.0 billion in the FY 2009-2010, said the updated MoC data.

Financial Express :: Financial Newspaper of Bangladesh

 

[eastwatch]

Thanks for the article. Bangladesh must press on India to import made in Bangladesh goods through new border trade points. The other day, in some other thread, I wrote an ignorant post that Walton is less interested in Indian market because of uneven competition with Indian products. It was quite an ignorance. Now, this news has opened my eyes. Good to know that BD products are equally accepted by the Indian consumers. Yes, consumers always prefer a better product which performs and looks better and is cheaper, irrespective of its origin. During my recent visit to BD, I have found hundreds of motor bikes in my own district. Looks quite impressive.

 

[KRAIT]

@eastwatch Buddy, India have so many people that BD companies will always get good range of customers. Also, since you are neighbors, it will be cheaper than other countries' products.

India should give BD access to its market. Economy of neighbors should always be helped so that they can develops fast and create a good economic zone. It gives the region a common power against big countries.

 

[Abhishek_]

i thought BD members dislike cheap hindu products

 

[Icewolf]

i thought BD members dislike cheap hindu products

cheap hindu products make the world go round.

 

[Hammer-fist]

@eastwatch Buddy, India have so many people that BD companies will always get good range of customers. Also, since you are neighbors, it will be cheaper than other countries' products.

India should give BD access to its market. Economy of neighbors should always be helped so that they can develops fast and create a good economic zone. It gives the region a common power against big countries.

1. Regional trade is a win-win for everybody.

Bangladesh makes money and prospers, India also makes money and prospers and has a more stable north-east flank with a more developed Bangladesh with a higher HDI less susceptible to radicals and extremists.

If we just fight and bicker as *certain people* (we both know who these very extremely sensitive souls are, who like to insult, label and bully others but cry and complain if people even call them by their name let alone insults) want then we get nowhere and the white west laughs at us "brown people" squabbling.


2. We Bangladeshis and especially the more influential sectors of our society are a moderate people not interested in war.

3. Businessmen in Bangladesh are involved in both major parties and upon making great profit from business will act as a powerful lobby for the continued stabilization of Bangladesh-India relations.

4. In what way can Bangladesh - being geographically in the middle - capitalize on the $100 billion trade between China and India?

 

[Bond]

cheap hindu products make the world go round.

 

[Icewolf]

4. In what way can Bangladesh - being geographically in the middle - capitalize on the $100 billion trade between China and India?

Bangladesh doesnt have a border with China... It is surrounded by India on all sides. So no, it can't capitalize unless India wants goods going through Bangladesh to get to China, which is virtually impossible because India doesnt need BD to trade with China, and making Indian goods go through BD, make the shipping time & costs higher

 

[KRAIT]

China gets access to Bay of Bengal. India gets access to Myanmar and other ASEAN nations will create a silk route if carefully planned. This will help BD the most.

Indo-China trade have indirect effect. It may not go through BD but region's development due to trade routes, will certainly help to create a customer base which can be targeted by BD.

If West Bengal, Bihar, NE develops, BD will have edge over distant states of India itself and purchasing power of people increasing in this region will certainly help BD to introduce more products.

India should do it if BD provides us transit. Quid Pro Quo is a must for maintaining good relations.

 

[Hammer-fist]

China gets access to Bay of Bengal. India gets access to Myanmar and other ASEAN nations will create a silk route if carefully planned. This will help BD the most.

Indo-China trade have indirect effect. It may not go through BD but region's development due to trade routes, will certainly help to create a customer base which can be targeted by BD.

If West Bengal, Bihar, NE develops, BD will have edge over distant states of India itself and purchasing power of people increasing in this region will certainly help BD to introduce more products.

India should do it if BD provides us transit. Quid Pro Quo is a must for maintaining good relations.

Thanks for the explanation.

It is refreshing to have a higher level of discourse on this sub-forum than the usual *you know what* from the usual *you know who* gang.

I have no problem in terms of trading with India.

The technical issues surrounding transit are not something I'm fully conversant with but @eastwatch and @iajdani will know more.

I think we Bangladeshis would also like to act as an outlet to the sea for both Nepal and Bhutan as part of the wider economic connectivity of the N.E. of the sub-continent.

 

[idune]

Non-tariff barriers keep squeezing exports to India


Dhaka, July 31: Bangladesh’s exports to India fell in the just concluded fiscal although New Delhi allowed duty-free access for 46 of Dhaka’s apparel products in to the country.In the just concluded fiscal, Bangladesh exported goods worth about US$ 498.42 million to India as against $ 512.51 million in the previous fiscal. The export trade registered a negative growth of 2.75 per cent, according to official data. Bangladesh's exports to India are gradually improving and reached half a billion dollar in 2010-11 from $289.42 million in 2006-07.

But the last fiscal was exceptional, although export of readymade garments (RMG) has increased substantially during the period.
Analysts and businessmen attributed the reasons to various non-tariff barriers including testing, certifications and weak border infrastructure that diminished the export potentials to the neighouring country. Some of the exporters also blamed diplomatic failure for the scenario.

The government's lack of initiative in negotiating with the Indian counterpart on different trade related issues was also pointed out as one of the causes.

“Even after duty-free access of Bangladesh-made RMG to India, Bangladesh could not make any significant growth in export mainly because of non-tariff barriers,” said DCCI president Asif Ibrahim.

He urged both the governments to solve the problem as early as possible for the betterment of bilateral trade.
Bangladesh's exports to India increased substantially in the middle of last fiscal since Dr. Manmohan had eased the long-hold sensitive import list and allowed duty-free and quota-free access of about 46 Bangladeshi apparel products.
But the tempo of exports has slowed down in recent days due to depreciation of Indian rupee. Rupee has been depreciated around 20 per cent since last September when the duty free imports were allowed.

In all, apparel export to India, however, increased sharply in the just concluded fiscal (2011-12). Garment manufacturers attributed the reasons mainly to the duty waiver facilities offered by the Indian government and high demand for basic clothing items that Bangladesh sew.

And, finally, the growing middle class consumers of India liked Bangladeshi wear products.Traders forecast more trade between Bangladesh and Northeast India if the existing non-tariff and para-tariff barriers go and that connectivity is improved through infrastructural developments.

Bangladeshi exporters often face a very traditional problem as Indian customs officials refuse to accept certifications of Bangladesh Standards and Testing Institute (BSTI), although Bangladeshi entrepreneurs are highly competitive and capable of manufacturing high quality products.

According to a study conducted by the Bangladesh High Commission in New Delhi last year, harsh testing requirement, complex harmonised code classifications, inadequate infrastructure, and special labeling requirements are among major non-tariff barriers that Indian authorities impose, to hinder Bangladeshi exports.

The study also noted that Indian authorities impose mandatory standard requirements, additional technical regulations, and difficult banking norms. Apart from that, the Indians also slap duties, other than tariff, and restrict the entry of Bangladeshi trucks into India.

Exporters complained that each item of food consignment is subjected to certification by port health officers, which take more than a month, and seriously hamper exports of food items to India.

About exports of soaps, sources said, all types of soaps are subjected to chemical tests and samples are sent to laboratories that take more than a month to issue clearance. Despite huge demand for cement, steel products, electrical and electronic goods, and leather products, in the North East India, these products need to comply with Indian Bureau of Standards’ (BIS) mandatory marketing and standard requirements, which also affect exports, the study observed.

Most of the land customs stations on the Indian sides have no warehousing facilities, and goods exported from Bangladesh are kept in the open, till customs formalities are over, which, in turn, result in huge damage and inconsistent supply of goods.
The number of bank branches in north-eastern India, that are allowed to handle foreign currency transactions and issue trading documents, is very limited. Even these are not authorised to carry out direct transactions with Bangladesh, which is a major impediment for Bangladeshi exports to NE India. “The existing para-tariff and non-tariff barriers, imposed often by Indian authorities on shipments from Bangladesh to India, are major obstacles, hindering growth of Bangladesh’s exports to India,” said an entrepreneur adding that Bangladesh’s current exports to India would increase two to three folds, if these barriers are lifted.

Non-tariff barriers keep squeezing exports to India

 

[fallstuff]

Exporting motor bikes to NE through a port in West Bengal !!!

I wonder what is the reason for that ?

 

[MST]

Thanks for the article. Bangladesh must press on India to import made in Bangladesh goods through new border trade points. The other day, in some other thread, I wrote an ignorant post that Walton is less interested in Indian market because of uneven competition with Indian products. It was quite an ignorance. Now, this news has opened my eyes. Good to know that BD products are equally accepted by the Indian consumers. Yes, consumers always prefer a better product which performs and looks better and is cheaper, irrespective of its origin. During my recent visit to BD, I have found hundreds of motor bikes in my own district. Looks quite impressive.

Would have been nicer if you had also acknowledged that Indian has not imposed unnecessary tarrifs to harm Bangladeshi imports (atleast on these products) something which you and other Bangladeshis have been claiming till now.

 

[Contrarian]

Thanks for the article. Bangladesh must press on India to import made in Bangladesh goods through new border trade points. The other day, in some other thread, I wrote an ignorant post that Walton is less interested in Indian market because of uneven competition with Indian products. It was quite an ignorance. Now, this news has opened my eyes. Good to know that BD products are equally accepted by the Indian consumers. Yes, consumers always prefer a better product which performs and looks better and is cheaper, irrespective of its origin. During my recent visit to BD, I have found hundreds of motor bikes in my own district. Looks quite impressive.

India should give more access to BD. But you also realize that currently on account of LDC status and as special concession India has given zero duty imports to BD.

This will end as soon as you jump to medium income. Then BD products would have to pay import duty like products from other countries.