India plans zero per cent duty on 4,200 items

India has decided to bring down duty level to zero per cent on 4,200 items from Bangladesh in three years from the current level of 12 to 20 per cent as a special gesture, Union Minister of State for Commerce Jairam Ramesh said on Monday.

"As per SAFTA, the duty structure was to be brought down to five per cent in three years, but as a special gesture, India has decided to bring it down to zero level by 2008," he said during a visit to the Indo-Bangladesh border.

He said that Bangladesh would be able to make 75 per cent of its exports to India duty free. Petrapole is the border on the Indian side in West Bengal and is the main trade route by road between India and Bangladesh.

He said that India would invest $103 million to develop Setee port in Myanmar coast, which would be an alternative route to north eastern region. The project would be implemented by RITES and was expected to be completed in three years time. Indian Foreign Secretary Shyam Saran was now in Yangon to discuss the matter, he said.