Bangladesh’s readymade garment exports to India registered significant double-digit growth in the first seven months of the current financial year 2024-25, rebounding from a decline in the previous fiscal.

Exporters attribute the surge to improving global market conditions and rising demand, which have boosted shipments to the neighbouring country.

They said that several Western brands operating their own stores in India are increasing their imports from Bangladesh, alongside growing domestic demand.

According to data from the Export Promotion Bureau (EPB), Bangladesh’s garment exports to India reached $427.62 million during July–January of FY 2024-25, reflecting an 18.70 per cent increase compared to the same period last year.

Out of the $427.62 million in earnings, US$147.85 million came from knitwear and US$279.16 million from woven garments, according to data from the Export Promotion Bureau (EPB).

During the July–January period of the FY24, apparel exports to India stood at $360.26 million.

In FY24, Bangladesh earned $548.83 million from garment exports to India, marking a 19.70 per cent decline from the $683.47 million recorded in FY23, EPB data showed.

Former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Faruque Hassan attributed the decline in Indian imports last fiscal year to the country’s increased focus on domestic production.

He said that currency-related issues had made imports more expensive for Indian buyers.

However, exporters cautioned that Bangladesh’s garment exports to India could face significant challenges once high-duty obligations come into effect following the country’s graduation from Least Developed Country (LDC) status.

They emphasised the need for Bangladesh to determine its post-graduation strategy promptly and apply for an extension of the existing preferential trade regime.

Exporters also urged the government to initiate negotiations on bilateral agreements with non-traditional markets to maintain trade concessions and seek additional time to prepare for upcoming challenges.

Like traditional markets such as the EU and Canada, Bangladesh’s readymade garment (RMG) exports are expected to face higher import duties in some non-traditional destinations as well.

A recent study found that Bangladeshi RMG exports to India could be subject to duties as high as 20 per cent.

DBL Group Vice Chairman MA Rahim Feroz warned that high duties could have serious implications for garment exports to India and Japan, leading to an initial decline in business growth in the post-graduation period.

Several exporters opined that a possible deferment of Bangladesh’s LDC graduation timeline should be considered, as economic indicators were inflated over the past decade while internal ecosystems have been disrupted.

They also stressed the need to further strengthen the country’s backward linkage industry to support competitiveness.

The duty-free market access currently enjoyed by Bangladesh is a key factor driving buyers’ sourcing decisions, they noted. Exporters urged the government to seek an extension of the LDC graduation timeline to help buyers plan their sourcing strategies.

Bangladesh is scheduled to officially graduate from LDC status on 24 November 2026.

Exporters further pointed out that businesses in Bangladesh continue to face high operating costs due to inadequate infrastructure, administrative inefficiencies, slow customs processes, and poor logistics, all of which hinder competitiveness and discourage investment.

Former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Fazlul Hoque, stressed the urgency of securing trade benefits beyond LDC graduation.

He said that India, Japan, Australia, Chile, and China are among the key non-traditional markets that currently offer duty benefits to Bangladeshi garments under LDC status.

‘Exports to India will be severely affected after graduation unless measures are taken to ensure continued duty benefits,’ he warned.