Country’s export earnings from neighbouring India posted a whopping 142 per cent growth in the first quarter of the current fiscal year while the earnings from two major export destinations — the USA and Germany — also registered sizable growth.
The readymade garment exports mainly drove the earnings growth in these countries in July-September of the financial year of 2018-2019, according to Export Promotion Bureau data released on Wednesday.
Growth in export earnings from two major Asian countries — Japan and China — also turned around in the period after experiencing frustrating performances in last few months.
Export earnings from India grew to $375 million in the first three months of the current fiscal year from that of $155 million in the same period of last fiscal year (2017-2018).
RMG export to India alone witnessed a 167-per cent growth with $145.11 million earnings in the period than that of $54.31 million in the same period of last year.
Export of edible oils to the country also rose significantly to $98 million from $5 million, the EPB data showed.
Centre for Policy Dialogue distinguished fellow Mustafizur Rahman told New Age that it was a good sign that exports to major destinations turned around along with higher growth in the Indian market.
Introduction of uniform goods and services tax scrapping states taxes might help the growth of RMG goods to the Indian market, he said.
He said that regional markets were very important for Bangladesh and significant rise in export earnings from India market was encouraging.
It is also good that export to the US market picked up, possibly on depreciation of the taka and lower price of cotton, he said, adding that the country should also pay attention to tapping the great potential of global market of leather goods.
The market of leather goods is bigger than that of RMG, he added.
Country’s export to the USA and Germany grew by 14.23 per cent and 14.53 per cent respectively in the quarter while export earnings from most of the European countries, except the UK, saw a modest growth by more or less 10 per cent.
Export to the UK witnessed a negative 1.16 per cent growth to $1,020 million from $1,030 million due to dwindling demand following Brexit.
Exporters said that ongoing trade war between the US and China created an additional demand for Bangladeshi apparel products in the US market contributing higher growth while growth in Germany was a continuation of previous year’s better performance of RMG makers in the market.
On the other hand, export earnings from India witnessed a remarkable growth as Western and Indian clothing brands set up a good number of stores in India and raised procurement from Bangladesh, they said.
They also termed the increased earnings from the US and major EU countries as a good sign hoping that the trend would continue in the coming months, particularly in the US market, driven by the trade war as US buyers had started considering Bangladesh as alternative sourcing destinations beyond China.
The country fetched $1,661 million in July-September of FY19 from export to the USA, the largest single export destination of Bangladesh, against $1,454 million in the same period of FY18.
Of which, RMG export brought $1,484 million with 13.61 per cent growth from the market in the period this year against $1,306 million in the same period of last year.
Bangladesh exported goods worth $1,587 million so far this year which was $1,386 million in the same period of last year.
RMG export grew by 16.22 per cent to $1,503 million against $1,293 million, the EPB data for the quarter showed.
The overall export grew by 31.84 per cent and 24.54 per cent in Japan and China respectively.
Export earnings from Japan increased to $323 million from $245 million due to a surge in apparel exports by 49 per cent in July-September in the current fiscal year compared with that of the same period of last fiscal year.
On the other hand, exports to China soared to $203 million from $163 million due to an increase in apparel and jute goods export, according to the data.
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