Despite the government’s efforts to diversify the export sector, the country still relies only on the ready-made garments (RMG) sector. Currently, the sector brings over 80 per cent of the export earnings home.
The reliance on a single product and a few markets poses potential risks in the country’s export basket.
According to the Export Promotion Bureau (EPB) data, the RMG sector exported products worth $30.25 billion in the first nine months (July 2024 to March 2025) of the current fiscal year 2024–25. Among these, European countries imported 50 per cent of the Bangladeshi RMG products, while the US imported 19 per cent, and 11 per cent of RMG products were exported to the UK.
Recently, the US government raised tariffs by 10 per cent on Bangladeshi exports. Previously, the tariff was set at 16 per cent, which has now surged to 26 per cent. Although the Trump administration had planned to raise the tariff to 37 per cent, they later halted the executive order and decided to raise the tariff by 10 per cent. Now, Bangladesh has to pay a 26 per cent tariff on its exported products until the next order.
This new export scenario has again raised concerns over relying on a single export sector and emphasised export diversification.
The latest EPB data says Bangladesh exported products worth $37.19 billion in these nine months. Among these, RMG contributed $30.25 billion alone, which is 10.84 per cent higher than the same period of the previous fiscal year.
In March alone, garment exports stood at $3.45 billion, marking a 12.40 per cent year-on-year growth.
Leather and leather goods were the second biggest export item this fiscal year, earning $850 million in nine months. In March alone, these exports were worth $94.5 million. However, there's still a huge gap of $29.4 billion between leather and the top export — garments.
Agricultural products were the third highest, with $810 million in exports — 6.14 per cent more than the same period last year. But in March, exports in this category dropped by 25.72 per cent.
Xclusive Can Limited Managing Director Syed Nasir stressed showcasing local products at foreign exhibitions to diversify our export basket. He also urged amending export policies and reducing corporate tax.
Commerce Adviser SK Bashir Uddin said that export diversification is now our primary concern, as a single sector alone cannot sustain our economy. To compete in the global market, new markets should be explored and created, he said.
He stressed utilising the increasing population to sustain economic growth, while eliminating corruption and raising accountability.
He further stated, “The commerce ministry and its associated departments always welcome businesspeople to discuss their problems. Any problem noted will be solved.”
Translated & edited by Fariha Nowshin Chinika
