Photo : Messenger
Among non-traditional partners, India, one of the significant importers of garments from Bangladesh, has experienced a decline of 17.09 percent in imports during the first five months (July to November) of the fiscal year 2023-24, compared to the same period last year.
According to the Export Promotion Bureau (EPB), during the five months, exports to non-traditional markets increased by 14.12b percent while exports to India dropped from $474.45 million to $393.38 million.
Industry insiders believe that the inflationary crisis has had a ripple effect on exports, affecting not only non-traditional partners like India but also major traditional markets.
Despite facing challenges in the export sector, there has been a remarkable achievement as garment exports to India reached $1 billion in the fiscal year 2022-23, marking an impressive growth of 41.58 percent.
“The inflationary pressure has indeed exerted an impact on the demand for fast fashion. The reduced buying capacity of people has led to a decline in exports to almost all destinations,” Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Vice President Shahidullah Azim, told the Daily Messenger.
Facing a decline in exports to the EU, exporters have shifted their focus towards Asian markets. They are actively promoting the 'Made in Bangladesh' brand in these new markets. Consequently, the export figures to non-traditional markets have shown a notable increase, surpassing the growth in traditional markets, he added.
In emerging markets, India ranks as the fourth-largest export destination for Bangladesh, following Japan, Australia, and Russia. Notably, exports to Japan amounted to $682.68 million, showing a growth of 14.19 percent. Australia stands as the second-largest market with exports totaling $515.68 million, experiencing a significant growth of 35.69 percent. Russia, as the third-largest market, received exports worth $173.04 million, showing robust growth of 33.96 percent.
Regarding the use of the Rupee while exporting Azim said, “We have a huge trade gap with India. We import $16 billion worth and export only $2 billion. If we would use both currency Taka and Rupee that will be better for us and dependence on the dollar will be eased.”
“The reality is gradually trade with the neighbors and region will be popular because the world has experienced adverse situations like lockdowns and war which could hamper the world supply chain. As Bangladesh is the nearest market for India, it has imported more from Bangladesh,’ Abdullah Hil Rakib, Director of BGMEA said.
BGMEA president Faruque Hassan hopes the export of apparel will get momentum from next year. During the first five months of the current fiscal year, Bangladesh achieved an export value of $18.83 billion, compared to $18.33 billion in the corresponding period last year. The exported products include trousers, T-shirts, sweaters, blouses, underwear, and more. However, the growth in exports during this period has been modest, registering an increase of only 2.75 percent.
Bangladesh's product exports to India in the fiscal year 2021-22 reached the milestone of $2 billion, which was 55.62 percent more than the previous fiscal year.
Messenger/Sajib
