The Government has finalized the modality to sign a Memorandum of Understanding (MoU) with the Indian government to export 8 million pieces of readymade garments (RMG) every year.

The Commerce Ministry has already submitted it for the approval from the Council of Advisers to start exporting the duty-free RMG pieces to the market of the neighbouring country.

Although India primarily made the offer two years back under the South Asian Free Trade Agreement (SAFTA) framework, the authorities took time to reach a consensus on such a modality for exporting the garments without any duty.

Earlier, India compelled Bangladeshi exporters to use Indian yarn to make a significant portion of the exportable RMG goods to India and asked for exporting those through a particular port. Subsequently, the neighbouring country relaxed many of its stringent conditions for the yearly export of the eight million RMG pieces from Bangladesh. As per the modality, India agreed to allow Bangladesh to make its RMG products either by its own or any other country's fabrics.

India lifted the restriction from export of the products under the proposed duty free deal only through six land ports and now it agreed to allow exports of those through sea, air or land routes.