RMG exports to India down 5pc in July-October FY26

Business Report :

Amid ongoing political tensions between Bangladesh and India, the country’s export of ready-made garments (RMG) to its neighbouring market has continued to decline.

According to data from the Export Promotion Bureau (EPB), in the first four months (July-October) of the current fiscal year 2025-26, Bangladesh’s RMG exports to India fell by 5.26 percent compared to the same period last year.

Over the past four months, Bangladesh exported RMG products worth $26.58 crore to India, down from $27.99 crore in the same period of the previous fiscal year.

Exporters attribute the drop mainly to the ongoing political strain between the two countries.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told the reporter, “One of the key reasons behind the decline in Bangladesh’s apparel exports to India is the ongoing political tension between the two countries. Globally, the market is also not performing well.”

The decline is not limited to India. Bangladesh’s exports to 16 emerging or non-traditional markets have also fallen by about 2.70 percent over the past four months. Countries including Australia, Korea, Mexico, New Zealand, Russia, and Turkey recorded lower shipments during the period.

However, exports increased to other markets such as Brazil, China, Japan, Malaysia, Saudi Arabia, South Africa, and the UAE. Among single-country destinations, the United States, Bangladesh’s largest export market, recorded over 5 percent growth, with shipments rising to $2.59 billion from $2.46 billion a year earlier.

The UK, Bangladesh’s second-largest RMG market, saw exports rise by 2.72 percent, while shipments to Canada grew by 11 percent.

Meanwhile, the European Union (EU), Bangladesh’s largest overall export market, posted only 0.48 percent growth, with exports to major countries like Germany, France, and Italy declining.

Bangladesh’s overall RMG exports have been on a downward trend since July. In total, apparel exports grew by only 1.4 percent in the July-October period.

Explaining the decline in major European markets, Hatem said, “After higher tariffs on apparel from India and China came into effect in the United States, both countries have been increasing their export efforts in the European market compared to Bangladesh.

This has intensified competition and is one of the key reasons behind the drop in exports there.”