Bangladesh’s apparel exports to new destinations grew 36.21 per cent in the first half of the current fiscal year. Among these are: Australia, Brazil, Chile, China, India, Japan, Korea, Mexico, Russia, South Africa and Turkey. Exports of knitwear products to these countries were 29.52 per cent higher than in the corresponding period previous year. Earnings from woven goods exports were up by 43.58 per cent. Traditional markets for Bangladesh apparel products are: the US and the European Union.

The main drivers for the sharp rise in exports from new destinations were policy support measures and increased cash incentives against exports. Apparel exporters now enjoy a four per cent cash incentives against exports to non-traditional markets, which encourage them to explore new destinations for their products. Additionally, these cash incentives allow apparel makers to practice competitive pricing in the global market.

Manufacturers are now participating in expos to establish contacts with buyers from non-traditional markets. This is also having an impact in terms of export earnings growth from new export destinations. Bangladesh’s export earnings from non-traditional export markets are expected to rise further as China and India are giving more importance in importing clothing products for local consumption and global retailers are opening new outlets in India.