He was inaugurating the 3-day 'Indian Cotton Yarn & Fabric Show-2006' at Dhaka Sheraton Hotel.

Cotton Textiles Export Promotion Council (TEXPROCIL) of India in association with Indian High Commission in Dhaka organised the show.

Although bilateral trade volume between Bangladesh and India has been increasing day by day, which resulted from Safta and Bimstech free trade agreements, this trade is highly tilted towards India, the minister said, suggesting that existing tariff, non- tariff and para-tariff barriers should be removed to address the huge trade gap.

Figuring a US$ 1886 million trade deficit between the two countries in FY 05, Hafiz Uddin anticipated "such a deficit may be widened this year too".

He also told the show that the bilateral trade volume stood at $ 2,200 million in the same fiscal year.

The minister also urged the Indian entrepreneurs to invest in fabric and yarn sector in Bangladesh taking the advantage of the country's LDC (least developed country) status.

Highlighting the positive sides of the show, he suggested that India should supply fabric and yarn to Bangladesh as a next door neighbour.

Bangladesh imports a huge volume of accessories for its export-oriented RMG industries, the commerce minister also told the function, expressing hope that this exposition would provide country's RMG manufacturers an opportunity to compare price and quality of required items and thus help in reaching this sourcing decision.

Veena Sikri, high commissioner of India to Bangladesh, DN Srivastava, minister (Economic and Commercial) of Indian High Commission, and Siddhartha Rajagopal, executive director, TEXPROCIL, also spoke on the occasion.

On the trade imbalance, Sikri said India is well aware of its trade deficit with Bangladesh and working sincerely to reduce the gap.

She, however, made a suggestion that gaining a trade atmosphere in its favour is linked to the country's infrastructure development.

Sikri also urged Bangladesh to develop Mongla sea port and establish trade link with Haldia port of India to accelerate trade and reduce trade gap between the two countries. She laid emphasis on a direct rail, road and water link to increase trade.

Sikri informed the show that Bangladesh was India's third largest export destination for fabrics and second largest for yarn.

Attended by 19 fabric and yarn producers of India, the show aims to have a wide interaction with local yarn and fabric importers and to project their wide range of cotton and blended textiles. The fair is open from 10am to 8 pm every day.