Bangladesh’s export to India slumped by 32.22 per cent in the first 10 months of the current financial year 2013-2014 compared with the same period of the corresponding period of the FY13. Economists and Bangladesh Bank officials said that political unrest in first six months of the FY14 coupled with continuous non-tariff and para-tariff barriers put by India were the pivotal causes of declining trend in Bangladesh’s export to India.
According to Export Promotion Bureau data, Bangladesh export to India dipped to $333.91 million in July-April this FY from $492.69 million in July-April in the FY13.
The 10-month export to India this year was also lowest in three years as total earning in July-April in 2011-2012 was $434.80 million.
Private think-tank Centre for Policy Dialogue’s executive director Mustafizur Rahman recently told New Age that the country’s export to India decreased this year as exporters had frequently failed to send their products to that country due to the political unrest.
‘The land ports between Bangladesh and India remained closed for a long time in the first half of the FY14 due to the frequent political unrest over the holding process of the country’s general elections which ultimately hit the export earnings from India,’ he said.
Mustafiz said overall export of the country to all countries grew by 13 per cent in 10 months as exporters could ship or airlift their products to other countries whereas Bangladesh’s trade with India was done mainly through land ports.
The current trend of export to India showed that the country’s trade gap with India might hit $5 billion at the end of the current FY.
Although Bangladesh Bank is yet to compile trade data with India for July-April, available data till December showed that the country’s trade gap with India swelled to $ 2.59 billion in the first half of the current FY. The country’s export to India was only $182.48 million in July-December of the current FY14 whereas import soared to $2.78 billion during the period.
Trade gap with India in July-December in the FY13 was $2.05 billion with an export figure of $267.26 million and import of $2.31 billion.
The CPD in a recent dialogue titled ‘Taking Advantage of Indian Market Access Initiative Through Promotion of Trade Facilitation’ said non-tariff barriers like certification and accreditation and cumbersome procedure and documentation put by India and local infrastructure crisis, inadequate custom and port facility were hurting the country’s export.
EPB data showed although export of readymade garment products to India increased to $77.49 million in the July-April period of the FY14 from $63.35 million in the same period of the FY13, export of other product slumped.
The export of Jute and related products, and cotton slumped to $51.05 million and $15.85 million respectively in the first 10 months of the FY14 from $117.75 million and $19.25 million during the same period of the FY13.
The export of fish and related products to India had declined to $3.97 million in July-April of the FY14 from $13.31 million during the same period of the FY13.
The export of fruit and related products decreased to $34.87 million in July-April of the FY14 from $58.40 million in the corresponding period of the FY13.
Former finance adviser to the interim government AB Mirza Azizul Islam said the protectionist attitude by Indian bureaucrats was hurting Bangladesh’s export, especially jute goods, to India in recent times.
He said Bangladesh export to India was also affected because of disruption of domestic production amid political unrest.
-With New Age input
