Bangladesh sees a setback in garment export to India, with a 7.89-percent fall recorded in the first quarter of this fiscal, on a year-on-year tally, although shipments to other traditional markets grew.
Readymade garment exports fetched US$ 282.82 million from India during the July-September period of the fiscal year 2023-24 as compared to $ 306.39 million earned in the Q1 of FY 2022-23, according to data compiled by Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
During the period, knit items witnessed a 14.64-percent fall to $ 117.24 million and woven 2.04 per cent to $165.58 million.
Exports to other major non-traditional markets like Japan, Australia, Russia, Korea, China and the UAE increased by a range between 27 per cent and 54 per cent during the period, according to data.
Apparel exporters attributed the fall to shrinking demand in India, as in other global markets.
When asked, Asif Ashraf, managing director of Urmi Garments Limited, said one of his Indian buyers deferred shipments, resulting in a significant fall in exports to the neighbouring country in the last two months, especially in September.
Another exporter said that India's data reflect the real scenario of the country's overall export performance as the majority of factories could not utilise half of their production capacity for the last several months due to shortage of work orders.
Talking to the FE writer, Mohammed Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the demand for apparel items declined in India like in other major destinations, including Germany.
Md Shahidullah Azim, vice president of BGMEA, said that India's overall imports also fell due to the global factors.
When asked, Dr Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD), said: "The currencies of both India and Bangladesh have witnessed significant devaluation that might have affected the export of local apparel items."
He suggests monitoring the situation, and says the exchange rate might make the Indian imports from Bangladesh costly, intensifying business risks.
Local RMG exports to the neighbouring country, however, reached the billion-dollar mark for the first time in FY 2022-23 when the country earned $1.01 billion, recording 41.58-percent year-on-year growth, according to BGMEA data.
In the same fiscal year, Bangladesh's overall exports to India stood at $2.13 billion, according to Export Promotion Bureau data. Bangladesh received US$1.99 billion from exports, including RMG, to India in FY '22.
On the other hand, imports from India stood at $ 13.69 billion in FY 2021-22, according to available data from the central bank, in a yawning trade gap with the big economy.
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