16 March 2022, Mumbai:
Bangladesh is fast emerging as a highly lucrative market for Indian consumers looking to buy cheap ready-made garments.
The country is home to several local and international brands and merchants setting up production units and increasing their sourcing from the country. A robust supplier of formal shirts, tops, denim trousers, underwear, polo shirts, T-shirts, and bottoms to India’s middleclass,
Bangladesh supplied garment products worth $365.94 to India's middle class from July to December this fiscal year.
Garments worth $365.95 million were supplied during the period an increase of 58.07 per cent in exports from the same period last year. Widening middle class fuels demand Demand for Bangladesh garments in India is being driven by growing middle-income groups.
Many Indian stores offer western clothing from Bangladesh. Garments are imported from Bangladesh and sold in the Indian markets.
A few retailers also import clothing items from Dubai to make orders with Indian manufacturers, who then purchase items from Bangladesh.
As Md Shahidullah Azim, Managing Director, Classic Fashion Concept says, a large number of Indian manufacturers are making orders in Bangladesh and re-exporting them to other nations. Another leading Bangladeshi apparel manufacturer, Ananta Group sells garments worth $1 million in India each year, informs Sharif Zahir, Managing Director.
India also permitted duty-free import of Bangladeshi garments under the SAFTA agreement in 2010. This has helped boost imports steadily. Geographical proximity, cheap transportation drive export RMG exports from Bangladesh are on the rise due to its geographical proximity to India.
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The country offers cheap transportation encouraging importers to acquire items for both local and global brands. Bangladesh now aims to boost garment exports with new government initiatives and improvement in bilateral connectivity between the two nations.
For the first time, Bangladesh's exports to India are set to exceed $2 billion by the conclusion of this fiscal year, says Faruque Hassan, President, BGMEA. In June 2022, BGMEA will attend a clothing trade event in Bengaluru comprising exhibitors from Bangladesh, Myanmar, and Vietnam.
The association will also send a business team to India to examine commercial and investment opportunities in Bangladesh.
Adapting to changing demands.
The ability of Bangladesh's RMG exporters' to recover quickly from the pandemic is an indication of its perseverance, resilience, and innovation.
These attributes are helping RMG exporters adapt and evolve with customers’ changing needs and bridge trade deficit with India.
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