Bangladesh's exports to India are up 42.91 per cent from the compared to previous fiscal. Of the total earnings, apparel exports were up 79.09 per cent from the previous year. Bangladesh offers apparel goods at reasonable prices, while global retailers are opening more outlets in India. As a result, demand for Bangladesh goods increased in India, which pushed up Bangladesh’s export earnings.

In addition, exporters enjoy cash incentives in exporting apparel goods, which is another big reason for the sharp rise in export earnings. Currently, Bangladesh provides a four per cent cash incentives against export of apparel goods to non-traditional export destinations. India is a non-traditional export market. Also, India as a friend has given duty-free market access to all Bangladesh goods except alcohol and tobacco. This has given opportunities to Bangladesh exporters to attain a leap in export earnings. In terms of population, India is the second largest country after China with a better purchasing power. So there is a huge scope for Bangladesh to grow its exports of consumer goods.

Apart from apparel, Bangladesh’s major exports to India are vegetable textile fiber, paper yarn, animal and vegetable fat, jute and jute goods and leather and leather goods.