Bangladesh's apparel exports to India, an emerging export destination, have seen a Sharp rise by 167.13% to $145.10 million in the first quarter (Q1) of the current fiscal year.

Staff Correspondent

According to Export Promotion Bureau (EPB) data, export earnings from the readymade garment sector registered a 167.13% growth to $145.10 million, which was $54.32 million in the same period a year ago.

Of the total, knitwear products contributed $37.76 million, while woven products earned $107.35 million.

July-September period of the fiscal year 2018-19, Bangladesh exports earnings from India stood at $375, up by 142%, which was $155 million in the same period last year.

First Quarter (Q1)	Total Earning	Rise (%)
2018-19	$145.10 million	167.13%
2017-18	$54.32 million

Talking to Textile Today, apparel industry insiders attributed duty-free and quota-free market access to Indian markets for the sharp growth. While the presence of global retailers in India has opened an opportunity for Bangladeshi apparel manufacturers as they are opening outlets.

International apparel brands and retailers are opening outlets in India and importing clothing products directly and indirectly from Bangladesh, which created an enormous opportunity for our products. As a result, Bangladesh exports to India have seen significant growth, Exporters Association of Bangladesh (EAB) President Abdus Salam Murshedy told the Textile Today.

In addition, local brands and retailers are also importing goods due to price competitiveness as production cost went up caused by the implementation of Goods Services Tax (GST), said Salam, also a Former President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

A sharp rise in a neighboring country is a good sign for Bangladesh as it would help diversification of markets and reduce dependency on traditional markets.

“A sharp rise in a neighboring country is a good sign for Bangladesh as it would help diversification of markets and reduce dependency on traditional markets," Centre for Policy Dialogue (CPD) Research Director Khondaker Golam Moazzem said the Textile Today.

The demand for Bangladeshi goods in the Indian market is increasing due to the rise of the middle class with disposable income in India. Bangladesh has to be more active in grabbing more market as the country has the largest population in South Asia, said the economist. “As a pro-business government, we are providing cash incentives against export to non-traditional market. While India is providing duty-free quota-free market access for Bangladeshi products,” Commerce Minister Tofail Ahmed said the Textile Today.

That is why, Bangladesh exports to India has seen a sharp rise, which we expect would cross a billion dollar this fiscal, said the Minister.

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.