When Bangladesh's readymade garment (RMG) export to its majority non-traditional, or emerging markets has been witnessing a robust growth, its performance in the neighbouring India, also an emerging market, has been rather dismal. In this connection, the data provided by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) show that in the first quarter (July-September) of the current fiscal (FY2023-24), the RMG export growth in the non-traditional markets including Japan, Australia, Korea, China and UAE ranged between 27 and 54 per cents. The export volumes to these destinations increased to US$ 2.24 billion from US$ 1.79 billion during the same period in the previous fiscal (FY 2022-23).
But when it comes to the export to India, a completely opposite picture is in sight. The same BGMEA figures further point out that the first quarter of this fiscal (FY 24) saw a volume of apparel export to India worth US$ 282.82 million, whereas over the same period in the previous fiscal, the amount was US$ 306.39. In other words, export of apparel goods to India fell by7.89 per cent year-on-year. The dichotomy is indeed intriguing. Being the next-door neighbour having common geographical borders and good communications by land, sea and air between the two countries, Bangladesh should have rather been at an advantage in its export-related trade with India vis-à-vis other remoter non-traditional export destinations. It is not only from the point of view of lower transport cost of goods to India compared to other remoter destinations. The existing very warm diplomatic relations between the two close neighbours is another important reason why Bangladesh's exports, especially of apparel products to India should increase.
As it is not happening that way, some exporters of apparel goods, as reported in the Wednesday (October 18)'s issue of this paper, viewed that it might be in line with the general fall in demand globally. In this connection, a reference to the postponement of shipment by a local RMG items exporter (of course, as requested by his Indian buyer) to his Indian counterpart was also made, obviously, to the dismay of the former. True, Bangladesh's exports to its major traditional destinations including the USA, Canada and European Union have been falling as evidenced by the shrinking volumes of work orders from those countries and economic blocs.
Thankfully, now that the non-traditional markets have emerged as a potential alterative, it is expected that the reduced export earnings from the major Western markets could be compensated to some extent by the increasing exports to these non-traditional markets. While explaining this reassuring development from emerging markets, some exporters, as reported, were of the view that it was, what they called due to 'apparel diplomacy' as well as product diversification and added value to the exported RMG products that lay behind the success. In that case, why, one wonders, the same policy has not worked in the case of India? No doubt, it demands a convincing explanation. At this point, the government at its diplomatic level needs to pursue the matter, while the local exporters at the field level should investigate what is holding back the growth of Bangladesh's apparel sales in the Indian market. Also, as some experts have indicated, the depreciation of both Indian rupee and Bangladesh taka, which might have played its part in the matter, should also be looked into.
