Address H.E. Mr. Pinak Ranjan Chakravarty,
High Commissioner of India 
At the Inaugural Ceremony of 
Indian Textile Exhibition- ITEXPO 2008 
19 June 2008, Dhaka
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I would like to thank organisers of 9th Textech Bangladesh, 2nd Dhaka International Yarn and Fabric Show, 6th Machine Expo, and 2nd Dyechem Bangladesh for inviting me at the inaugural ceremony of these events. 

I am delighted that the Synthetic and Rayon Textiles Export Promotion Council of India (SRTEPC), with the active support of BGMEA and BKMEA is organising India Textile Exhibition (‘ITEXPO 2008) concurrently with these events. We are indeed honoured with the presence of Honble Adviser (Textiles and Jute), Mr. Md. Anwarul Iqbal, and distinguished guests on the dais who have extended their support to this event with their presence here this afternoon.

The fact that this is the 4th Indian Textile Exhibition being organised in Dhaka in last few years clearly indicates the close collaboration between textile and garments industries from both our countries, and the potential this sector has for future growth. 

The textile and garment industry occupies a unique place in the economy of our countries by virtue of its contribution to the industrial output, employment generation and foreign exchange earnings. This sector is the single largest employer in India after the agricultural sector. 

India has emerged as one of the worlds leading manufacturer of man-made textiles, fabric, yarn and blended textiles. Indian firms are capable of supplying a wide range of products for textile and apparel industry ranging from polyster, rayon, nylon and blended fabrics to textile machinery, textile chemicals to both the expanding domestic and global markets at competitive prices and world-class quality. The man-made fibre textile industry in India is vibrant and growing. The textile and apparel sector in India is witnessing large-scale investments for technology upgradation and modernisation for producing superior quality products at competitive prices. 

Bangladesh has been an important market for Indian firms for export of synthetic, rayon and blended fabrics made-ups and yarn and other inputs for ready made garment (RMG) sector. The RMG sector is one of the fastest growing sectors in Bangladesh, employing large number of work force, and contributing significantly to countrys export and foreign exchange earnings. Sustaining high growth of garment industry requires assured supply of inputs and other raw material. This provides exciting opportunities for business alliances and joint ventures between firms from both our countries. 

Todays exhibition will give you a glimpse of Indias capabilities and capacity in this sector. I hope the manufacturers and exporters of woven and knit garments in Bangladesh would make best use of the opportunity presented to them through this exhibition organized by Synthetic and Rayon Textile Export Promotion Council of India. I hope that this Exhibition will be able to complement and strengthen on-going efforts of Bangladeshi manufacturers and exporters in increasing their global export. I thank the SRTEPC for their efforts and enthusiasm in organizing this event.

Besides exclusive Indian textile Exhibition, I am happy to note that more than 50 Indian firms from areas such as textile machinery, chemical are participating in these events. This is a clear indicator of potential for bilateral trade and investments in textile and garment sector. 

India attaches the utmost importance to strengthening our friendly and cooperative ties with Bangladesh. There are positive trends in our bilateral trade and economic relations, and I am confident that these will become stronger in the coming years. 

There is zero duty market access with effect from January 1, 2008 to products from Bangladesh and other Least Developed Countries from SAARC region for all items, except a small negative list. India is in the process of pruning down this sensitive list as well. 

India has recently removed the prohibition on investment into India by citizens of Bangladesh or entity incorporated in Bangladesh with the prior approval of the FIPB of the Government of India. 

The MOU allowing export of 8 million apparel articles in one calendar year by Bangladesh, duty-free, to India is now operational. I understand from President BGMEA and BKMEA that many members of their organisations have been allocated quantity under this TRQ, and they are in the process of exporting apparel to India. This is a welcome development. 

Two-way trade has been growing fast, and has crossed the US $ 2.5 billion mark last year. India is presently Bangladeshs largest export destination in the developing world, with exports over US $ 290 million in 2006-2007. It is encouraging to know that Bangladeshs exports to India have expanded more than 480 percent from US $ 62 million in 2000-01 to US $ 290 million in 2006-07. Recent initiatives taken by India, including under SAFTA, open up considerable opportunities for business community in Bangladesh. I am confident that entrepreneurs in Bangladesh would take advantage of these increased market access opportunities in Indian market, and harness the complementarities in textiles and garment sector for mutual benefit. 

To facilitate bilateral trade and investment linkages, we need to strengthen trade infrastructure. Lack of adequate connectivity seems a major impediment in the economic development of the region. It adds to cost of doing business. This needs to be addressed without any delay. The importance of better connectivity in fulfilling the objective of shared economic cooperation, regional prosperity, a better life for the people of South Asia was endorsed by SAARC leaders at Delhi Summit in April 2007. With regard to India-Bangladesh, there are significant proposals for improving physical connectivity – road, rail, shipping, and inland waterways, opening more trade routes. India is ready to move at a faster pace to strengthen connectivity. 

The ITEXPO 2008, and participation of Indian firms at these exhibitions, I hope, would result in greater awareness of the strengths, quality and vast product range of Indian textile industry. I am confident, interaction at the exhibition will lead to newer business opportunities and commercial tie-ups. 

I congratulate the organisers of these exhibitions and once again thank all who have extended their support in participating in this event.

Thank you.