Kazi Zahidul Hasan :
Bangladesh’s exports to Indian increased by 30 per cent in the just concluded fiscal year on account of apparel products’ sturdy performance, which enjoys duty-free access to the markets of the neighbouring country.
According to data from Export Promotion Bureau (EPB), the country earned US$ 873.27 from merchandise exports to India in the fiscal 2017-18 compared with US$670.40 million in the fiscal 2016-17 when Bangladesh’s import from India stood at US$ 6.33 billion, presenting a big trade deficit with the neighbouring country.
Readymade garment (RMG) export to the neighbouring country also saw 114.69 percent steep increase to US$278.68 million in the immediate past fiscal compared with US$129.81 million in the previous fiscal.
“We’re happy to see the export growth. But this is not the optimum level. Our export to India can even grow at faster pace provided trading irritants like non-tariff barriers and infrastructure bottlenecks are resolved,” Abdus Salam Murshedy, President of the Exporters’ Association of Bangladesh told The New Nation yesterday.
He said that Bangladesh’s apparel exports to India saw a steep rise in the immediate past fiscal, ushering in new hopes and possibilities of export to the neighbouring country.
“Garment exports to India were increasing due to duty-benefit, geographical proximity and growing demands for Bangladeshi apparels among the Indian middle class consumers,” he said.
Salam Murshedy further said, Bangladesh has a great prospect to expand its apparel export to India, as global fashion brands are rapidly opening their retail shops in the country. Moreover, Indian brands are also shifting their sourcing from India to Bangladesh taking advantage of duty-free import.
Despite the potential, he observed, Bangladesh’s apparel export to India showed a sluggish growth in the past few years due to ‘Lilliput’ scam.
Lilliput, the largest kids’ wear brand in India, did not pay $5.5m to 22 garment exporters of Bangladesh and this eroded confidence of local RMG exporters leading to the slow growth in Indian market.
“India could be third biggest apparel export market for Bangladesh with US$5.0 billion turnover after the EU and the US in the next 10 years if non-tariff barriers (NTBs) such as harmonisation and classification issues and non-recognition of technical standards are resolved along with improved port, transport and telecommunication connectivity on the Indian side,” he said.
Regarding Bangladesh-India trade imbalance, Murshedy said, trade balance remains in favour of India over the years because Bangladesh has limited products for exports. “We have to diversify export items to narrow the trade imbalance.
