Source: Prothom Alo
Exports of Bangladeshi products to India had increased for two consecutive fiscals after the coronavirus pandemic. Despite various challenges globally, Bangladeshi exports to India crossed the 2-billion-dollar mark for the first time in the 2022-23 fiscal. But then there was a decline in exports. The export of Bangladeshi products in India has dropped by 17 per cent in the 2023-24 fiscal so far.
According to the figures of the Export Promotion Bureau (EPB), Bangladeshi products worth USD 1.27 billion have been exported to the Indian market in the first eight months of the current fiscal, which was USD 1.53 billion in the previous fiscal. As such, exports of Bangladeshi products have declined by 16.59 per cent.
Analysing the figures of the EPB, the top Bangladeshi export products in the Indian markets are – readymade garments, jute and jute yarn, home textile, soybean oil, frozen fish and plastic. The 23 per cent drop in the export of readymade garment is a key factor behind the fall in overall export. Readymade garment covers almost 50 per cent of the products exported from Bangladesh to India.
Meanwhile, imports of Indian products have increased despite the drop in the export of Bangladeshi products. According to the Ministry of Commerce and Industries of India, products worth USD 5.38 billion have been imported to Bangladesh from India in the first seven months of the current fiscal, which was USD 4.92 billion in the previous year. That means, imports of Indian products have increased by nine per cent in between July and January.
In 2011, India granted Bangladesh a duty-free facility on all products except arms and drugs. However, Bangladesh couldn’t make the most of this opportunity. An Indian company named Lilliput didn’t pay the money after purchasing ready-made garment from several Bangladeshi companies. Following that, there was a drop in readymade garment exports. However, it gradually rose again with the opening of outlets of various world famous brands in different cities of India.
Bangladesh exported garment products worth USD 420 million in the 2020-21 fiscal, which increased to USD 710 million and USD 1.01 billion in the next two fiscal years respectively. As a result, export of readymade garment products to India doubled within just a couple of years. Therefore, this market is considered a promising market.
According to the EPB, Bangladesh exported garment products worth USD 580 million in the first eight months of this fiscal, which was USD 750 million at the same time in the previous fiscal. As such, exports have dropped by 22.99 per cent this year.
Speaking about this to Prothom Alo, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hassan said, “Readymade garment from Bangladesh is exported to India for various local and international brands. It is hard to identify any specific reason behind the decline in the export in the first half of the current fiscal. Those Indian companies are importing less. At the same time, they are expanding their capabilities to hold this market for readymade garments. Despite that, we expect to bounce back within a year. The exports might not increase that much, but it will definitely be close to the previous figures.”
Apart from readymade garment, exports of jute and jute threads have declined by nearly 1 per cent. Jute and jute threads worth USD 137.6 million have been exported from Bangladesh to India in the first eight months of the current fiscal, which was USD 139 million in the previous year at the same time. Besides, exports of home textile products have declined by 6 per cent. Bangladesh has exported home textile products worth USD 75.9 million from July to February this fiscal. However, the export of leather products and shoes has increased in this time.
