India's Ban On Bangladeshi Garments Hits Fashion Retailers Ahead Of Festive Season

(MENAFN- KNN India) New Delhi, Sep 2 (KNN) Nearly three months after India banned the import of readymade garments from Bangladesh through land routes, leading fashion retailers like Marks & Spencer, H&M, Zudio, and Lifestyle are facing shortages in their stores, according to The Economic Times.

The policy, introduced on May 17, 2025, by the Directorate General of Foreign Trade (DGFT), now restricts imports from Bangladesh to only Kolkata and Nhava Sheva (Mumbai) seaports. Earlier, garments arrived via land ports, enabling faster delivery.

The new rules have caused delays of two to three weeks, particularly affecting affordable fashion items under Rs 1,000. Imports from Bangladesh have already fallen around 25 per cent year-on-year.

The timing is critical as India enters its peak festive shopping season from September to November, covering Diwali, Durga Puja, Navratri, and Karva Chauth.

Retailers depend on timely shipments to stock fresh collections and meet consumer demand during this period.

Bangladesh, the world's second-largest garment exporter after China, has been a key supplier for India's affordable apparel market.

India imported Rs 5,000–Rs 6,000 crore worth of garments annually from Bangladesh, mainly for mass-market retail.

Between January and June 2025, imports rose slightly to USD 254.44 million, up 3.5 per cent from the previous year, showing a steady decade-long growth trend.

The restriction is expected to increase sourcing costs by 3–5 per cent due to higher shipping charges. While large retailers may manage through advance orders, smaller traders and grey-market operators will face the most pressure.

Although the DGFT did not state the reason for the curbs, the decision followed comments by Bangladesh's interim leader Muhammad Yunus about northeastern India during a China visit, which drew political criticism in India.

Tensions have also risen after former Prime Minister Sheikh Hasina fled to India in August 2024 and due to concerns over attacks on minority communities.

Despite these strains, India-Bangladesh trade remains substantial, with bilateral trade reaching USD 12.9 billion in 2023-24. Meanwhile, India's own garment exports face challenges after the US imposed 50 per cent tariffs on New Delhi.

(KNN Bureau)

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