Bangladesh’s apparel exports to India have seen a sharp rise by 115 per cent to $279 mn in the last fiscal year. In fiscal 2017- 18, Bangladesh’s RMG exports to India stood at $279.19 mn, up by 115 per cent compared to $129.81 mn in the FY17, according to the Export Promotion Bureau (EPB) data.
Of the total amount, Knitwear products earned $71.05 mn, which is 89.75 per cent higher than the $37.44 in the same period a year ago. Woven products earned $207.62 mn, up by 124.79 per cent, compared to $92.35 mn a year ago. On the other hand, Bangladesh’s overall exports to India have registered a 29.87 per cent growth to $873.27 mn in the FY18.
The country’s exports to the US and Germany achieved a minimal growth in the first two months of FY19, while the exports to most of the European countries witnessed a negative growth. Exporters said that the shipment to the EU market was heavily hampered in the month of August due to the Eid ul-Azha holidays and the earnings from that zone witnessed a negative growth in the month.
The export earnings from India witnessed a remarkable growth as Western and the Indian clothing brands set-up a significant number of stores in India and raised procurement from Bangladesh. Moreover, quality and reasonable price have also helped in sharp rise in export earnings.
India is a very potential market for Bangladesh as it has the second largest population after China. The government should stress on improving the bilateral trade relation between two friendly countries. On top of that, Bangladesh has to improve the connectivity with the boarder area to grab more market share in India.
The trade deficit with India is the highest in Asian region and exploring more opportunity in Indian markets, will help Bangladesh to reduce traded gap. Hence, Bangladesh government has to boldly negotiate with the Indian Government to remove non-tariff trade barriers.