Bangladesh’s apparel exports to India, a close competitor in the global markets, have seen sharp rise by 115% to $279 million in the last fiscal year. Exporters and trade analysts attributed quality and reasonable price of clothing products for the sharp rise in export earnings.
In fiscal 2017-18, Bangladesh’s RMG exports to India stood at $279.19 million, up by 115% compared to $129.81 million in the FY17, according to the Export Promotion Bureau (EPB) data.
Of the total amount, Knitwear products earned $71.05 million, which is 89.75% higher than the $37.44 in the same period a year ago. Woven products earned $207.62 million, up by 124.79%, compared to $92.35 million a year ago.
On the other hand, Bangladesh’s overall exports to India have registered a 29.87% growth to $873.27 million in the FY18.
“Bangladesh apparel exports to India have seen sharp rise, it’s a good sign for Bangladesh. Due competitive price and quality, demands of Bangladeshi products increased in the Indian markets. As a result, exports earnings rose significantly,” Exporters Association of Bangladesh (EAB) President Abdus Salam Murshedy said Textile Today.
result, exports earnings rose significantly,” Exporters Association of Bangladesh (EAB) President Abdus Salam Murshedy said Textile Today.
Bangladesh apparel exports trend to India
Bangladesh apparel exports to India from FY14 to FY18 (in US$ million).
On the other hand, global brands are opening outlets in India and sourcing from Bangladesh, which may be another reason for the recent rise in export earnings from India, said Salam, a Former President of Bangladesh Garnishment Manufacturers and Exporters Association (BGMEA).
However, the export earnings from the neighboring country could be more, if the non-tariff barriers are removed.
“India is a very potential market for Bangladesh as it has the second largest population after China. While, there is middle class with handsome disposable income,” former caretaker government Finance Advisor AB Mirza Azizul Islam said the Textile Today.
In tapping the opportunity, Bangladesh government has to boldly negotiate with the Indian government to remove non-tariff trade barriers, said AB Mirza Azizul Islam. He also suggested a common standard, which will be effective in all provinces in India to ship goods.
“Non-tariff barrier is a great challenge for Bangladesh to expand exports volume as well as value. In taping the opportunity in Indian markets, Bangladesh has to focus on harmonizing common standards for trading,” said Mohammad Hatem, Former Vice President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
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 such as with seven- sister to grab more market share in India, he added.
Trade deficit with India is the highest in Asian region and exploring more opportunity in Indian markets, will help Bangladesh to reduce traded gap, Mohammad Hatem added.