According to the latest data from the Export Promotion Bureau (EPB) of Bangladesh, the country’s apparel industry earned $32.463 billion in the first nine months of the current 2023-24 fiscal year (July to March), which is 10.84 percent more than last year. In March alone, apparel exports increased by 12.40 percent, reaching a value of $3.45 billion. In March last year, this amount was $3.07 billion.
Of the export earnings of the ready-made garment sector, $1.863 billion came from knitwear exports, which increased by 12.93 percent year-on-year. In addition, $1.636 billion came from woven garment exports, which increased by 11.82 percent compared to the same period last year.
The country’s total export earnings, mainly driven by the ready-made garment sector, reached $37.1913 billion, a 10.63 percent increase over the same period last year. This growth is being considered a positive signal for the Bangladeshi economy.
The total export revenue in March was $4.25 billion. This is 11.44 percent more than the same month last year. Export revenue in March last year was $3.81 billion.
According to exporters, investment in green-friendly factories, positive branding and increased confidence and reliance on the country’s export sector in the global market are driving the export growth.
However, there are concerns about whether this pace of export earnings can be maintained in the future.
The United States, the largest market for ready-made garments, has announced an additional 37 percent duty on Bangladeshi products in addition to the current import duty rate. So far, the average rate has been 15 percent. The combined duty rate on Bangladeshi ready-made garments in the United States stands at 52 percent.
Mohiuddin Rubel, additional Managing Director of Denim Expert and Former Director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said, the announcement of additional tariffs by the US has raised doubts about maintaining the momentum of exports. Some buyers have already requested that production and export activities be suspended until further notice. Some buyers are pressing for exporters to bear or share the entire burden of the additional tariffs.
The United States was the destination for 18 percent of Bangladesh’s ready-made garment exports in the last fiscal year. In addition to apparel, those who export shoes and leather goods, home textiles and frozen food products to this market are also concerned.
