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Bangladesh’s economy is flourishing with garment manufacturing leading the way making the demand for two-wheelers in the country. India is greatly benefited by this surging demand being the biggest two-wheeler manufacturer in the world. The value of the two-wheeler exports that are being imported by Bangladesh from India has reached $277 million or Rs.19 billion in Fy2017-18 which an increase of 50%. Bangladesh is now the lead two-wheeler market for India as the country’s demand has surged passed over Sri Lanka’s demand.
Also, in FY 16 the shipments to Bangladesh were of $128 million which have now nearly doubled. Bangladesh’s ready-made garment exports were of worth $29billion in the year 2017. The country’s economy is growing strongly and so did the demand for motorcycles in 2017 which increased by 50% to about 360000 units. 2018 also sees the growth continuing in double digits. The data from the Union Ministry shows that Bangladesh was among the top three export destinations for two-wheelers and was the only country to have a demand growth in double figures.
A decline of 3.5% was seen in exports to Sri Lanka that reached $216million. The third biggest market was Nepal that showed a growth of 3.7% with an export value of $186 million. In the last year, India has shipped two-wheelers worth $2 billion to 145 countries. Out of these exports, Bangladesh accounted for 14% of the sale.
To meet the growing demand, some Indian two-wheeler manufacturers are creating manufacturing facilities in Bangladesh.
India also gets its biggest truck export market in Bangladesh with consignments of $232 million in the FY18. The country also comes in top 20 for Indian passenger vehicle exports. The annual exports of India (all products) to Bangladesh in Fy18 stood at $8.46 billion. Nearly $600 million out of these exports is from the sale of two-wheelers, trucks, passenger vehicles and buses.