Photo : Messenger
Among non-traditional partners, India, one of the major garment importers from Bangladesh, has experienced a decline of 17.27 percent in apparel imports during the six months from July to December of the 2023–24 fiscal year.
According to the Export Promotion Bureau (EPB), overall exports to non-traditional markets have increased by 12.28 percent during the same period. However, exports to India decreased from $548.87 million to $454.10 million compared to the same period in the previous year.
Industry insiders attribute this decline to the inflationary crisis impacting major traditional markets as well. Despite setting records, garment exports to India reached $1 billion in the 2022–23 fiscal year, growing by 41.58 percent.
Shahidullah Azim, Vice President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Daily Messenger, “Inflationary pressure has impacted the demand for fast fashion. People’s buying capacity has decreased, which is why exports to almost all destinations have declined.”
While exports to the European Union have declined, exporters are turning their focus to Asian markets and are promoting the “Made in Bangladesh” brand in new markets. Consequently, exports to non-traditional markets have seen a greater increase compared to traditional ones.
In new markets, India is the third-largest export destination for Bangladesh, following Japan and Australia. Exports to Japan amounted to $830.08 million, growing by 9.98 percent, and to Australia, it was $644.07 million, growing by 24.67 percent.
Regarding the use of the rupee while exporting, Azim said, “We have a huge trade surplus with India. We import goods worth $16 billion and export only $2 billion. If we use both currencies, the taka and the rupee, it will be better for us. Additionally, dependency on the dollar will be reduced.”
Abdullah Hil Rakib, Director of BGMEA, highlighted the increasing popularity of trade with neighbours and the region, emphasising that the world has faced adverse situations such as lockdowns and wars that could disrupt the global supply chain. Being the nearest market to India, Bangladesh is expected to import more from Bangladesh.
BGMEA President Faruque Hassan expressed optimism, expecting the export of apparel to gain momentum in June or July.
In the first six months of the current fiscal year, Bangladesh achieved exports of $23.39 billion, a slight increase from $22.99 billion in the corresponding period of the previous year. The overall export fell by only 1.72 percent.
In the last fiscal year (2021–22), Bangladesh's product exports to India reached the milestone of $2 billion, marking a 55.62 percent increase compared to the previous fiscal year.
Messenger/Fameema
