India emerges as one of Bangladesh’s top garment export destinations

India is emerging as a big destination for Bangladesh’s apparel exports in recent years, a development that can encourage exporters about the potential lies with Asia’s second-largest economy.

Bangladesh shipped apparels to India worth over $524 million in the first nine months of the current fiscal year, an increase of 58 percent year-on-year, according to Export Promotion Bureau statistics.

In Europe--- the largest export market for Bangladesh’s apparel products --- shipment grew by 31.51 percent.  To the markets like the USA, Canada and UK, Bangladesh’s apparel export grew by 53 percent, 30 percent and 27.53 percent, respectively, during this period.

Of the other major non-traditional markets, Bangladesh shipped $503 million worth of garments to Russia, $626 million to Australia and $850 million to Japan during this period.

“As we ship our products through land borders by trucks to India, the high freight cost has been avoided. Also, India offers Bangladeshi apparel duty-free entries,” Shahidullah Azim, vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told Business Insider Bangladesh.

There are other reasons for Bangladesh to do better in the Indian market.

“The reality is that the trade with the neighbours and within the region will increase gradually as the Covid-19 pandemic wanes. The virus has pushed almost all countries into adverse situations and countries suffered from consecutive lockdowns. On top of it now comes war on Ukraine. As Bangladesh is the nearest market to India, New Delhi has been importing more from Dhaka,” Abdullah Hil Rakib, a director of BGMEA, said.

The readymade garment fetched most of the foreign currency Bangladesh earns. In March the apparel shipments fetched $3.93 billion out of total out-bound trade of $4.76 billion.

Recently, at an Iftar party BGMEA president, Faruque Hasan said exports of apparel during April may reach $4.5 billion.

During the nine months of the current fiscal year, Bangladesh bagged $31.42 billion from the export of trousers, T-shirts, sweaters, blouses and underwear.