Dhaka: India on April 10 agreed to provide market access to 40 Bangladeshi products under 16 categories capping three days of tough negotiations to boost bilateral trade and bridge burgeoning trade gap between the two South Asian neighbours.

The decision to give duty-free access to Bangladeshi goods came at the extended commerce secretary-level meeting between the two countries after two days of talks ended on April 9 amidst disagreement on tariff concessions and transshipment rights.

Bangladesh had pressed for duty-free access to goods under 25 categories.

A joint press statement issued at the end of the talks said India agreed to provide duty-free access to Bangladeshi exportables including prepared food, pharmaceuticals, cosmetics, toiletries, soap, leather products, electrical wires, battery, electrical goods, aluminum products, artificial flowers, voltage stabiliser, transformers and furniture.

The two sides agreed to discuss duty-free access to Bangladeshi goods under the remaining nine categories at the earliest, it said.

Seeking to address India's concern over the ban on use of land route for supply of Indian cotton yarn to Bangladesh, Dhaka agreed to take up the issue with its National Board of Revenue under Finance Ministry.

India had voiced concern over the ban on use of land route for yarn saying it would seriously hit export of the commodity to Bangladesh.

PTI