As per industry executives, from Marks & Spencer and H&M to Zudio and Lifestyle, several clothing retailers are facing short supplies in their stores after nearly three months since India banned road imports of readymade garments from Bangladesh.
The import of readymade garments from the neighbouring country is now allowed only through seaports of Kolkata and Nhava Sheva in Mumbai, leading to delays of 2-3 days in merchandise sourcing, especially in lower-priced fashion. However, the impact is more visible now as retailers have started stocking fresh collections along with end-of-season sales.
In a directive issued on 17th May, the Directorate General of Foreign Trade (DGFT) restricted imports of all kinds of readymade garments from Bangladesh through landports. Apart from being the world’s second largest exporter of garments after China, Bangladesh is India’s crucial supplier, specifically in the affordable segment.
Owing to the recent policy changes, retailers like Lifestyle, Reliance and Aditya Birla have been shifting their production domestically.
Devarajan Iyer, Chief Executive Officer of Lifestyle International stated, “While we have shifted some of our sourcing within the country, there are a few categories which we import from Bangladesh and have been delayed due to the policy change.” He therefore emphasised on the need to plan ahead to ensure steady supplies of fresh merchandise to minimise the impact on sales.
While cost will increase by 3-5% due to higher shipping price, the impact will not be immediate as many Indian buyers had secured contracts few months in advance, said Rahul Mehta, Chief Mentor of Clothing Manufacturers Association of India (CMAI) and Managing Director of garment sourcing firm, Creative Garments. But he added that smaller traders and grey market operators who depend heavily on quick and low-cost supplies from Bangladesh are expected to get impacted due to the policy shift.
During January-June 2025, India imported US $ 254.44 million worth of apparel from Bangladesh, up by 3.5% from US $ 245.84 million a year earlier, according to data from International Trade Centre (ITC) and Confederation of Indian Textile Industry (CITI).
However, Sanjay Jain, Managing Director of textile and apparel firm TT Industries and Chairman of the textile expert panel of the Indian Chamber of Commerce stated, “Imports of readymade garments from Bangladesh have dwindled by 25% year-on-year.”
