by Apparel Resources News-Desk
01-February-2019 | 2 mins read
That India has emerged as a major export destination for Bangladesh apparel items is a well known fact, more so going by the increasing exports volumes in the last couple of years. However, the importance of India as an export market from Bangladesh’s perspective in the coming days was underlined by Bangladesh’s Commerce Minister recently.
As per the country’s Commerce Minister Tipu Munshi, Bangladesh has the potential to export US $ 2 billion worth of apparel to India in the next two years thanks to its duty-free market access to India and rising demand for garment items at competitive prices in the neighbouring country.
“Apparel export to India rose significantly in the last two years and we have the capability to export more,” reportedly maintained Bangladesh Commerce Minister Tipu Munshi speaking at a press briefing after a meeting with the Acting High Commissioner of India Adarsh Swaika, while expressing hope that apparel shipments to India will cross the US $ 2 billion-mark over the next couple of years.
It may be mentioned here that as per many experts, India is pegged to emerge as the future of global retail. The Indian fashion retail market, currently at US $ 46 billion, is expected to reach US $ 115 billion by 2026, growing at a promising CAGR of 9.7 per cent. What’s more, the share of spending on clothing and footwear in total consumer spending in India is at 6.7% which is way higher than what is seen in the US (3%) and the UK (5.7%). Also, the year-on-year expenditure growth in India at 12% is more than double the anticipated global rate of 5%.
This retail boom in India is expected to give an impetus to garment imports from Bangladesh, which has an edge over many of its competitors owing to the duty-free market access that it enjoys currently.
Further, according to data from Bangladesh Export Promotion Bureau, in fiscal 2017-18, garment exports to India more than doubled to US $ 278.68 million.