Among the non-traditional markets, India is seen as the most potential destination with RMG exports crossing the $1 billion mark for the first time in FY23. Exports there grew by 42 percent to $1.01 billion from $720 million in FY22.
Research is underway to evaluate the demand and types of seasonal demand in Middle East and Africa. He hopes that apparel exports to these new markets will further grow as regular contact is maintained with businessmen and diplomats. Bangladesh secured $8.37 billion from garment exports to its relatively new markets, the highest in three years.
In the previous two fiscal years, the figures were $6.37 billion and $5.08 billion respectively to Middle East and Africa. As a result, these markets’ share rose to 18 percent in FY23, up from 15 percent in FY22.
Bangladesh witnessed a 10 percent growth in RMG exports in FY23, with increased exports to new markets. Exports to the largest single market, the US, and the second largest market, Germany, declined. In the recently concluded fiscal year, ready-made garment exports soared by more than 31% year-on-year. Exports to the EU have grown but at a slower pace.
Exports to the 27-country bloc, the EU, grew by less than 10%, while declining by nearly 7% to Germany and almost 6% to the US market.
In a bid to diversify export markets, the government is providing a 4 percent cash incentive on exports to non-traditional markets, a move reflected in the rising exports to these regions. Typically, the US, EU and Canada are viewed as traditional markets while key emerging markets include Japan, India, China, Russia, Turkey and Australia.
