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Wednesday, 28 August 2013

Bangladesh apparel export to India rises on tariff concession


Bangladesh apparel export to India rises on tariff concession

Bangladesh’s export of apparel products to India rose by about 37% to US$75m in the fiscal year 2012-13 thanks to duty-free and quota-free access of some textile products into Indian market.
The earnings increased from $55m in the fiscal 2011-12, after India offered the tariff concession to 46 textile products of greatest sensitivity from September 2011.

In the last fiscal year, Bangladesh exported knitwear worth over $14m, an increase of about 12% compared to the previous fiscal year’s value of about $13m.

“Bangladesh has bright export potential in India as the country is densely populated and has strong middle-class consumers,” said a BGMEA director.

He said garment exports to India are increasing due to high demands for Bangladeshi products like trousers, shirts, blouses, skirts, kids wear, cotton nightwear and jeans.

Woven garments worth $61m was exported during the period, which was more than 42% higher compared to $42m of the previous fiscal year.

“Bangladesh’s garment export to India increased due to the tariff concession and geographical proximity, but we could not achieve expected growth,” Salam Murshedy, president of Exporters Association of Bangladesh (EAB) told the Dhaka Tribune.

To achieve the target, the government and stakeholders in the sector should showcase the products in different states of India through holding fairs, he said.

If Bangladesh takes measures to cut a slice from the huge Indian market, Salam said it can become the second big destination for the country’s apparel products.

About the possible impact of substantial devaluation of Indian Rupee against dollar, Murshedy said it would have little impact on our RMG exports as the manufacturers, at the same time, will get inputs at lower prices.

RMG exports may face a setback in the days ahead due to devaluation of the Rupee as the Indian consumers would cut consumption, said a senior official of EPB.

He, however, argued the local manufacturers will also get the privilege of lower import cost for raw materials, which would allow them to cut the export products too.

Bangladesh’s overall exports to India rose to about $564m in 2012-13, which is more than 13% higher compared to the previous year’s $498m.

Readymade garment exports from Bangladesh to India have seen a significant jump, said a statement of Indian High Commission to Bangladesh.

Item-wise break-up of Bangladeshi exports to India reveal that textile fibres, paper yarn, and woven fabric constitute about 24% of the exports followed by other man made textile articles, which constitute about 14%.

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