NEW DELHI: A booming economy driven by garment manufacturing in neighbouring Bangladesh is fuelling demand for two-wheelers, among other things. India, the world’s biggest two-wheeler maker, has emerged the key gainer of this surge in demand. The value of two-wheeler exports from India to Bangladesh jumped 50 per cent in FY18 to $277 million (Rs 19 billion), making it India’s biggest export market, ahead of Sri Lanka.
The value of shipments to Bangladesh has more than doubled since FY16, when it was just $128 million. Indian two-wheeler majors Hero MotoCorp and Bajaj Auto are the biggest beneficiaries of this surge and, between the two, they are estimated to control about half of the local market there. Bangladesh is estimated to have exported readymade garments worth $29 billion in the calendar year of 2017. Riding on robust economic growth, the nation’s demand for motorcycles soared 50 per cent in 2017 to an estimated 360,000 units. The high double-digit growth continues in 2018 as well.
Data available with the Union Commerce Ministry shows that Bangladesh was the only Country in the top three export destinations to have seen a double-digit growth in two-wheeler exports. The value of shipments to second biggest market Sri Lanka declined 3.5 per cent to $216 million. Nepal, the third biggest market, saw a growth of just 3.7 per cent to $186 million. India shipped two-wheelers worth $2 billion to 145 Countries last year and Bangladesh alone accounted for 14 per cent of the exports.