Apparel shipment to India grows 56% amid global economic depression

Bangladesh’s apparel export to India soared by 56 percent during July-October period of the current fiscal year to $397 million amid a global economic depression, stemming from the Russia-Ukraine war.

According to EPB, Bangladesh’s apparel exports to India grew by 55.87 percent in July-October while the overall export growth for the non-traditional market was 24.17 percent.

In Europe, the biggest export market for Bangladesh’s apparels, witnessed only 10.26 percent growth. Apparel exports grew by 9.22 percent and 27.53 percent in the Canadian and UK markets respectively while it fell by 0.11 percent in the USA.

During July-October, Bangladesh shipped to India worth $397.16 million of garments as against $254.80 million during the corresponding period of the last fiscal year.

However, India stands to be the 4th highest export destination for Bangladesh in the non-traditional market. Russia is the 3rd highest garment importer but receipts fell 51 percent to $90.23 million from $185 million compared to the corresponding period of the last FY. Meanwhile, Australia accomplished runner up by importing $626 million, making 8.84 percent growth and Japan championed by importing the highest $454 million worth of apparels. Dhaka’s export growth to Japan experienced 26 percent growth.

“As we can send our products through land borders by trucks to India, we avert high freight cost and port hassles. On the other hand, India has duty free facilities for Bangladeshi apparels,” Shahidullah Azim, Vice President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told Business Insider Bangladesh.

Some said the market is forcing importers to place their orders at the nearby locations.

“The reality is that gradually trade with the neighbors and region will be popular because the world has been experiencing adverse situations like lockdowns and war which affected the global supply chain. As Bangladesh is the nearest market to India, it has imported more from Bangladesh,” Abdullah Hil Rakib Director of BGMEA said.

The readymade garment sector is fetching the majority portion of the country’s export receipts. In October, apparel shipment aggregated $3.67 billion.

In the 2021- 2022 fiscal year, Bangladesh got $42.61 billion from the international market exporting trousers, T-shirts, sweaters, blouses and underwear etc.