Bangladesh's exports to India witnessed a rapid growth to stand at around $1 billion in five months in the current fiscal year and it hit record high in the last fiscal to reach about $2 billion.
Exports of manufactured garments, the main export product, have increased by around 49 percent to stand at $474.50 million over the same period of the previous fiscal amounting $318.90 million.
In July, the first month of 2022-23 fiscal year, exporters of Bangladesh have exported various products worth $152 million to the neighboring country India, up 20.53 percent more than the same period of previous fiscal amounting to $126.10 million.
It was followed by $222.40 million in August, $240 million in September, $176.70 million in October and $177.50 million in November in the current fiscal respectively.
Experts said the export earnings to India are increasing due to geographical reasons with a lower cost of production. Besides, these earnings have increased rapidly as the country is now producing quality products, they said, expecting that it will continue to grow in the coming days.
If this positive trend continues, Bangladesh's exports to the Indian market will surpass $3 billion for the first time by the end of the current fiscal year, they mentioned.
Commerce Minister TipuMunshi has recently told reporters, “We are very happy that exports to India are increasing. Hopefully, the country’s exports to India will exceed $3 billion in the current fiscal year.”
Economists said if Bangladesh can capture the Indian market well, the country of about one and a half billion people, Bangladesh will move forward.
According to Export Promotion Bureau (EPB) data, Bangladesh’s exports to India increased to $966.86 million during July-November period in the current fiscal. Among the total amount, the export of ready-made garments was worth $474.50 million, almost half of the total export.
Among the total garments export earnings, about $220 million came from knitwear and $255.52 million from oven garments.
The rest is in different sectors including jute and jute products, plastic products and leather and leather products.
In the fiscal year 2021-2022, India has imported goods worth $1.99 billion from Bangladesh. Out of this, $715.41 million came from garment export.
According to the latest data from the Export Promotion Bureau (EPB), India, as a single country, is now the seventh-largest export market in Bangladesh. In other words, India is now one of the top 10 markets for Bangladesh's export earnings.
Even in the fiscal year 2020-21, India did not have a place in the list of top 10 export markets of Bangladesh. During the time, India was ranked 14th-15th.
The United States, as always, is on top and Germany is in second place. It was followed by United Kingdom, France, Spain and Poland respectively.
MohiuddinRubel, Director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said, “The value of garments made in Bangladesh is increasing in India. Bangladesh's exports to India are increasing due to geographical reasons. It seems to me that from now on it will continue to grow.”
India has to buy clothes from Bangladesh to meet the demand of about 1.5 billion people, he said, adding that the cost of making garments in India is much higher than that imported from Bangladesh. That is why they are now buying more and more clothes from Bangladesh, he mentioned.