Despite an increase in Indian imports, Bangladesh’s exports to India have declined over the past eight months ending in February, largely attributed to a drop in garment exports. Bangladesh exported goods worth US $127 crore during this period, down by 16.5% compared to the same period in the previous year.
Meanwhile, Indian imports into Bangladesh increased by 9% to US $538 crore between July 2023 and January 2024. The decline in Bangladeshi apparel exports to India, efforts to strengthen the domestic apparel manufacturing sector, and global trade slowdowns due to geopolitical crises contribute to the widening trade deficit. Top exports to India include ready-made garments, jute products, home textiles, soybean oil, frozen fish, and plastics, with garments comprising the largest share.
Although efforts by India to achieve self-sufficiency may have contributed to the slowdown, the exact cause remains uncertain. Bangladeshi garment exports are expected to rebound but may remain around the US $100 crore mark recorded in the previous fiscal year. Additionally, the country’s dollar crisis has posed challenges for local companies in procuring raw materials for export goods.
Comment here