Bangladesh’s overall exports to India reached $1.99 billion in the last FY 22 marking a solid 55% year-on-year growth.
The country shipped goods worth $1.27 billion to the neighbouring country in FY21, according to an Export Promotion Bureau (EPB) data.
The FY22 export earnings surpassed the pre-pandemic level income which was $1.24 billion in FY19, EPB data also showed.
However, the country’s trade cap with India continued to widen in the period.
Imports from India increased considerably over the years triggering a huge trade gap between the two neighbours, mostly in favour of India.
Bangladesh imported goods worth $8.59 billion in FY21, according to Bangladesh Bank data.
Readymade garment or RMG is the major local product (about 35%) shipped to India followed by other products – raw hides, leather goods, jute goods, fish and crustaceans, inorganic and organic chemicals, sources said.
Out of the $1.99 billion exports in FY22, RMG (both woven and knit) items fetched $715.41 million, 69% higher than the previous fiscal year’s earnings of $ 421.86 million, according to the EPB.
Exporters, especially those shipping apparels, attributed the increase in exports to a growth in demand of these items among India’s rising middle-class people.
They opined that India is among one of the potential Asian markets, not only for RMG but also for non-RMG products.
Western retailers, having outlets in India, and Indian local brands also found sourcing their goods from Bangladesh competitive while RMG enjoys duty benefit, they mentioned.
Local jute exporters, however, said their shipments to India are facing difficulties due to imposition of anti-dumping duty on jute goods by that country.
Abdul Barik Khan, secretary general of the Bangladesh Jute Mills Association (BJMA), said that jute exports to India fell significantly due to the anti-dumping duty on jute goods.
Sources, however, said that India may soon remove anti-dumping duty on Bangladeshi jute exports, hinting that the announcement may come during Prime Minister Sheikh Hasina’s visit to Delhi in the first week of next month.
