India to emerge as the third biggest export market of Bangladesh Readymade Garments after the EU and USA
Bangladesh readymade garment exports may soon reach India, a $28 billion dollar domestic market and potentially the third biggest export market after the EU and the USA, if duty free access is allowed. An announcement is expected during the upcoming visit of Indian Prime Minister Dr Manmohan Singh to Bangladesh.
India remains a very big opportunity for the Bangladesh readymade garment sector as all the major brands have opened up retail outlets in India and as the Indian RMG sector is unlikely to be able to cope with demand. Meanwhile Bangladesh is the only neighbor of India capable of delivering its needs and where it can outsource its work.
The Bangladesh garment sector is growing in leaps and bounds. Already a relaxed GSP facility from the EU affective from Jan 2011is increasing orders, but as Bangladesh becomes more attractive than its competitors exports to non traditional markets such as Japan, Australia, Brazil, South Africa, Chili and Turkey, has increased considerably as well. Japan, Australia and New Zealand offer duty free access to RMG products of Bangladesh.
As capacities are increased and as we become more competitive than other nations, the market is steadily changing from a buyer dominated market to a manufacturer’s market.
