Bangladesh’s readymade garments exports in the July-May period of the current financial year 2023-24 increased in most non-traditional markets, excluding India.

Non-traditional markets refer to destinations outside the European Union, the United States, the United Kingdom and Canada.

Export growth to these markets rose by 6.47 per cent to $8.19 billion, with declines noted in exports to India by 23.11 per cent.

Despite challenges in major markets like the EU and US, optimism persists among exporters due to better pricing in non-traditional markets like Australia, Japan, South Korea, Russia, China, the UAE and Saudi Arabia, where significant export growth was observed.

According to data from the Export Promotion Bureau, Bangladesh’s RMG exports to India experienced a significant decline to $728.85 million during FY24’s 11-month period, down from $947.86 million in FY23.

Fazlee Shamim Ehsan, Senior Vice President of the Bangladesh Knitwear Manufacturers and Exporters Association, expressed confidence in the future growth prospects of Bangladeshi apparel in non-traditional markets, citing favorable pricing dynamics for exporters.

He noted that the Indian government’s substantial incentives for RMG sector investments in certain states aim to bolster global market share, prompting increased production capacity among Indian manufacturers.

Consequently, Bangladesh’s apparel exports face mounting non-tariff barriers in the Indian market.

Despite challenges in major markets like the EU, US, and Canada in recent months, exporters maintain optimism regarding non-traditional markets.

Bangladesh’s apparel exports to the EU showed modest growth of 2 per cent to $21.65 billion in July-May FY24, whereas earnings from the US declined by 3.43 per cent to $7.47 billion compared to the same period a year earlier.

Among specific non-traditional markets, Bangladesh witnessed notable increases in apparel exports.

Exports to Australia grew by 11.76 per cent to $1.18 billion, exports to Japan rose by 1.83 per cent to $1.48 billion, and exports to South Korea increased by 14.34 per cent to $572.85 million.

Additionally, exports to Russia surged by 15.50 per cent to $462.35 million, while exports to China saw a robust growth of 23.23 per cent to $310.55 million during the period.

EPB data further highlighted significant growth in Bangladesh’s apparel exports to the United Arab Emirates, soaring by 34.08 per cent to $368.94 million, and RMG export earnings from Saudi Arabia increased substantially by 58.28 per cent to $273.05 million in July-May FY24.