Bangladesh’s readymade garment exports to India were up 115 per cent compared to exports in fiscal 2017 in fiscal 2018. Of the total amount, earnings from knitwear products were 89.75 per cent higher than the same period a year ago. Earnings from woven products were up 124.79 per cent. In the last fiscal year, Bangladesh’s export earnings from the apparel sector were 8.76 per cent higher compared to previous year earnings.
Also, since India has raised duties on clothing imports from China, this has opened an opportunity for Bangladesh readymade garment exporters. India has doubled import duty on about 328 textile and apparel products from China. As a non-traditional export destination, India is a potentially great market for Bangladesh. It is logical if India’s textile products imports from China decrease, Bangladesh can grab the space.
Since India has a large population and a growing middle-income group, there is scope for exports from Bangladesh to Indian markets to see a sharp rise. Bangladesh already enjoys duty and quota-free market access to Indian markets. Now Bangladesh manufacturers have to develop good relations with global retailers, who are opting to open outlets in India. Non-tariff barriers are a great challenge for Bangladesh in penetrating Indian markets.