All pharmaceutical products and drugs can now be imported at 10 per cent duty from LDCs, against 12.5 per cent duty earlier. However, tariff on drugs has not been cut in the case of Pakistan and Sri Lanka

Dr Manmohan Singh, the Finance Ministry has scrapped import duty on more than 4,800 items from the four neighbouring least developed countries (LDC) — Bangladesh, Nepal, Bhutan and the Maldives. As a part of efforts to boost trade in South Asia customs tariff on these products from Pakistan and Sri Lanka has been reduced.

Official sources said that the latest round of tariff changes is aimed at deepening the tariff concessions given to those countries. The new rates have come into effect from January 1, 2008. The Agreement on South Asian Free Trade Area (SAFTA) came into force on January 1, 2006.  The SAFTA was signed on January 6, 2004 during the twelfth SAARC Summit in Islamabad.