Bangladesh's RMG exports to India drop 5% in first 4 months of FY26

Amid ongoing political tensions between the two neighbouring countries, Bangladesh's export of ready-made garments (RMG) to India, one of its key markets, 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% compared to the same period of the previous 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 last fiscal year.

Exporters attribute the fall in exports to India mainly to the ongoing political strain between the two countries.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told The Business Standard, "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," he added.

Not only India, but Bangladesh's exports to 16 emerging or non-traditional markets have also declined by about 2.70% in the past four months.

Exports fell in several non-traditional markets, including Australia, Korea, Mexico, New Zealand, Russia, and Turkey.

However, exports increased during the period in countries such as Brazil, China, Japan, Malaysia, Saudi Arabia, South Africa, the UAE, and several others.

Among single-country markets, the United States, Bangladesh's largest export destination, recorded over 5% growth in July-October, with shipments rising to $2.59 billion from $2.46 billion a year earlier.

The UK, Bangladesh's second-largest RMG export market, saw exports rise by 2.72%, while exports to Canada increased by 11%.

Meanwhile, the European Union (EU), Bangladesh's largest overall export market, posted only 0.48% growth in the four-month period. Exports to major markets such as Germany, France, and Italy declined during the period.

Bangladesh's overall RMG exports have been on a downward trend for the past three months since July. In total, apparel exports grew by only 1.4% 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, compared to Bangladesh, both countries have been increasing their export efforts in the European market. This has intensified competition for Bangladesh, and is one of the key reasons behind the drop in exports there."