BD export to India soars by 53pc to $1.07 billion
The country's overall export to India significantly increased to US$1.07 billion in ten months from July-April under the current fiscal 2018-19. This is a robust 53 per cent growth breaking the billion dollar trade line to Indian market for the first time as per figure from Export Promotion Bureau (EPB).
Ready-made garment (RMG) items are the major local goods shipped to India along with other products like raw jute and jute goods, fish and crustaceans, plastic and leather items. Insiders attribute the rise in export top phenomenal growth in demand of these items among the Indian rising middle class people.
They said India is a potential market, not only for RMG but also for non-RMG products. Western retailers, having opened outlets in India are increasingly sourcing from Bangladesh, besides Indian local brands out-sourcing goods from Bangladesh finding it competitive, they added.
Fazlee Shamim Ehsan, acting president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the growing middle class in India is pushing up the demand for Bangladesh produced garment items there. Besides, the western retailers, including H&M, are directly out-sourcing from Bangladesh.
The duty-free access to India has also encouraged western buyers to procure for their outlets in India from Bangladesh. "Indian local clothing brands are also gaining confidence in the quality products made in here," he said.
Local jute exporters, however, said their export to India is facing difficulties due to imposition of anti-dumping duty on jute goods. Country's one-fourth jute and jute goods are shipped to India but it is charging between $19 and $356 duty per tonne including anti-dumping duty in fact barring such exports.
The other non-traditional destinations where local export during the period under review witnessed double-digit growth included Japan $1.17 billion with 22.57 per cent growth, and China $709.06 million with 26.14 per cent growth.
Besides, export to Australia rose 13.63 per cent and reached $688.89 million, Russia 12.83 per cent to $446.94 million, and Korea 48.05 per cent to $317.72 million, the EPB data showed.