TDS Desk:

Bangladesh’s apparel exports fell in August but, shipments to India increased. This growth comes at a time when, due to restrictions, apparel exports to India are allowed only through Chittagong port.

Over the past four months, India imposed restrictions three times on imports via land ports. On 17 May, apparel was among the goods hit by the first ban.

According to India’s restrictions, its importers were barred from bringing apparel through land ports. Only the ports of Nhava Sheva in Mumbai and Kolkata remained open.

To send goods to Nhava Sheva, shipments from Chittagong seaport must pass through Sri Lanka’s Colombo port first, involving four rounds of container loading and unloading, which raises the cost and time both.

Exporters say that despite higher costs, Indian buyers still find it more accessible to import apparel from Bangladesh compared to other countries. This is because Indian importers enjoy duty-free benefits on apparel sourced from Bangladesh.

Mohammad Hatem, president of the knitwear manufacturers’ association BKMEA, told Journalists, “The rise in apparel exports to India is really positive.”

“Although due to the restrictions imposed by the country’s government it takes longer to send the shipments by sea, it is still more affordable. That’s why apparel exports haven’t faced major challenges,” he added.

HOW MUCH IS THE GROWTH? 

Data from the National Board of Revenue (NBR) show that in August, two and a half months after the restrictions being imposed, Bangladesh exported apparel worth USD 80.6 million (USD 8.06 crore) to India.

During the same month last year, the figure was USD 69.2 million (USD 6.92 crore). This marks nearly 16.5 per cent growth in apparel exports.

According to NBR figures, in the three months (June–August) after the ban being imposed, Bangladesh exported apparel worth USD 183.5 million (USD 18.35 crore) to India, compared to USD 159.1 million (USD 15.91 crore) during the same quarter last year.

By that count, there has been an increase of 15 per cent in the apparel export following the ban.

Currently, all apparel exports to India are routed through Chittagong seaport. Before the ban was imposed on export through land ports, 30 per cent of the apparel was shipped via Chittagong port, 69 per cent through land ports with about 1 per cent sent by air.

Meanwhile, Export Promotion Bureau (EPB) data show that Bangladesh’s overall apparel exports in August fell by 4.75 per cent to about USD 3.17 billion (USD 317 crore), down from USD 3.33 billion (USD 333 crore) recorded in the same month last year.

This means while the global apparel exports fell, exports to India actually rose.

Boosted by apparel, overall exports to India are also on the rise. In the first two months of the current fiscal year (2025–26), Bangladesh exported goods worth USD 314.2 million (USD 31.42 crore) to India.

During the same period last year Bangladesh had exported goods worth USD 302.8 million (USD 30.28 crore). That means export to India increased by around 4 per cent on the whole.

India is Bangladesh’s eighth-largest export destination, and within Asia, it is the largest. Bangladesh exported goods worth nearly USD 1.82 billion (USD 182 crore) to India in the 2024–25 fiscal year.

Apparel accounted for 36 per cent of this export, while non-apparel goods made up the remaining 64 per cent.

WHO ARE THE BUYERS?

NBR data show that Bangladesh’s top apparel buyer in India is Trent Limited, a subsidiary of the Tata Group. Last month alone, Trent imported apparel worth USD 11.4 million (USD 1.14 crore), representing 14 per ecnt of Bangladesh’s total apparel exports to India.

Alongside Trent, global apparel retailers such as H&M, Levi Strauss, M&S, Puma, Uniqlo, Decathlon, Pepe Jeans, and Bestseller are also sourcing apparel from Bangladesh for sale in the Indian market.