Experts and exporters noted that Bangladesh’s imports from India
decreased due to the central bank adopting an import contraction policy in
response to the dollar crisis. However,
they expressed concern over the decline in export earnings from the country.
‘We all know that the Bangladesh Bank has adopted an import contraction
policy due to the dollar crisis, and the overall imports of the country have
decreased. But it is a concerning matter that export earnings are decreasing
amid the devaluation of taka,’ Centre for Policy Dialogue distinguished fellow
Mustafizur Rahman told New Age on Monday 20 May. He said that the devaluation of the taka increased the
competitiveness of the export sector, but it was unusual for the exports of
Bangladesh’s ready-made garments to see a fall in India.
The Indian data showed that the country’s knitwear imports from
Bangladesh in FY24 fell by 34.05 per cent to $204.11 million compared with
those of $309.48 million in FY23. Woven garment imports by India from
Bangladesh in FY24 also declined by 11.79 per cent to $391.42 million from
$443.71 million in FY23. Moreover, available data from the Export Promotion
Bureau, Bangladesh also showed that the country’s apparel exports to India in
July-Match of FY24 decreased by 22.31 per cent to $645.18 million compared with
those of $830.51 million in the same period of FY23.Mustafizur Rahman said that the decline in RMG exports to the Indian
market could be due to India focusing on developing its own capacity in the
sector.
Although the government allowed trade settlement between Bangladesh and
India in rupees in July 2023 to reduce pressure on the depleting foreign
currency reserves and boost bilateral trade, Mustafizur Rahman stated that it
had brought hardly any benefit. The economist noted that it would be difficult
for Bangladesh to sustain export growth in India with only RMG exports in the
future.‘The country needs to diversify
its export products,’ he said.
Indian data showed that Bangladesh’s rice imports in FY24 decreased by
94.94 per cent to $15.87 million from $313.36 million in FY23. Maize imports
from India in FY24 declined by 86.82 per cent to $72.72 million from $551.76
million in FY23. Data also showed that Bangladesh’s sugar imports from India in
FY24 decreased by 74.82 per cent to $118.84 million from $464.53 million in the
previous financial year.