Non-garment exports grow, but RMG slowdown keeps total shipments flat in Jul-Jan

Bangladesh's export earnings remained largely stagnant in the first seven months of the current fiscal year, as a sustained slowdown in garment shipments continued to outweigh incremental gains in non-readymade garment sectors, reflecting the economy's dependence on a single export pillar.

According to data from the Export Promotion Bureau (EPB), exports during July-January FY26 stood at $28.41 billion, registering a 1.93% year-on-year decline, even as shipments rebounded 11.22% month-on-month in January.

Readymade garments (RMG), which account for about 81% of Bangladesh's export basket, recorded a 2.43% year-on-year fall during the period, exerting downward pressure on overall export performance despite moderate growth in several non-RMG segments, including engineering products, leather goods, jute items, frozen fish and home textiles.

Export earnings from the RMG sector amounted to $22.98 billion in the July-January period, down from a year earlier. Within the segment, knitwear exports declined by 3.13%, while woven garment shipments fell 1.60%, reflecting weak demand and continued price pressures in major markets.

In contrast, non-RMG exports posted relatively stronger growth, though from a much smaller base. 

EPB data show that engineering product exports rose by nearly 26%, driven by sharp increases in bicycle exports (31%) and electrical products (26.8%). 

Exports of leather and leather goods increased 5.7%, while home textile shipments grew 3.3% and jute and jute goods exports edged up by just over 2% during the period.

Fazle Ehsan Shamim, vice president of the BKMEA, told The Business Standard that exports have slowed due to both global and domestic factors. 

"The US's reciprocal tariff on Bangladeshi products reduced orders, while Indian and Chinese exporters gained greater access to the EU market, affecting Bangladesh's garment shipments," he said.

Shamim also cited domestic political uncertainty ahead of elections, which led major buyers to cut orders by 20-30% to avoid delivery risks.

MA Rahim Firoz, vice chairman of DBL Group, said historical experience shows that foreign buyers often reduce orders before and after elections – a trend observed for the past 30 years. He predicted this pattern would continue over the next two months, with significant growth only expected from April.

Exports decline for 6th consecutive month

Bangladesh's exports fell in January 2026, continuing a six-month streak of year-on-year declines. Export earnings reached $4.41 billion, down 0.50% from $4.43 billion in January 2025, EPB data shows.

Industry sources noted that such consecutive point-to-point declines have not been seen since the global Covid-19 lockdowns in 2020, when shipments were disrupted worldwide.

Data further show that exports in the first month of FY26, July 2025, stood at $4.77 billion. The following months recorded $3.91 billion in August, $3.62 billion in September, $3.82 billion in October, $3.89 billion in November, and $3.96 billion in December.

This indicates a significant drop in exports from the levels seen at the start of the fiscal year. Last July, the US imposed reciprocal tariffs on Bangladeshi products, putting pressure on the country's largest export market, which in turn affected other markets. Conditions gradually improved in subsequent months.

For comparison, in FY25, exports were $3.82 billion in July, $4.03 billion in August, $3.80 billion in September, $4.13 billion in October, $4.12 billion in November, and $4.62 billion in December.

RMG exports show slight decline

The country's main export product, ready-made garments, fell 1.35% year-on-year in January. RMG shipments amounted to $3.61 billion, down from $3.66 billion in January 2025. However, RMG exports rose 11.77% compared with December 2025.

Exports to Germany, France, Italy, Japan, Denmark, Australia, Sweden, Belgium, and Turkey declined in January compared with December. By contrast, shipments increased to the US, UK, Spain, Netherlands, Poland, India, Canada, China, UAE, and Saudi Arabia.

Exports to India grew the most, rising 19.23% month-on-month to $166 million in January, up from $127 million in December. Despite this, cumulative exports to India in the first seven months (July-January) fell 4.98% to $1.05 billion, down from $1.10 billion in the same period of FY25.