India has agreed to relax its existing ban on imports of air conditioners with refrigerants for Bangladesh.
If this happens, Walton, Bangladesh's electric giant, will be able to export such type of air conditioners to India again.
In October last year, India's Directorate General of Foreign Trade imposed the ban with a view to boosting domestic production. However, the prohibition does not apply to split ACs.
Dhaka on Monday requested the withdrawal of the ban for Bangladesh at a meeting between the two countries' commerce secretaries. Delhi gave its consent to it.
Md Hafizur Rahman, director-general of the WTO cell of the commerce ministry, told The Business Standard, "We will now formally send a letter to India, requesting that the country's import ban on air conditioners with refrigerants, be relaxed for Bangladesh."
Commerce ministry officials said Bangladesh does not export many air conditioners to India. In 2019, Walton signed an agreement with Hyundai Electronics to export 100,000 units of refrigerators and 20,000 units of residential air conditioners to India.
In March last year, Finance Minister AHM Mustafa Kamal officially inaugurated the export of Walton-manufactured air conditioners to India.
Most air conditioners imported by India are with refrigerants. In 2020, India imported air conditioners amounting to around $48 crore from China and $24 crore from Thailand.