Bangladesh’s overall apparel exports declined in August, but shipments to India bucked the trend, recording significant growth despite restrictions that bar land port trade.
India has, since May, imposed restrictions three times on imports through land ports, forcing Bangladeshi exporters to rely solely on Chittagong seaport. Apparel, among the restricted items, can now only be shipped to India via Chittagong, with onward movement to Nhava Sheva (Mumbai) requiring transshipment through Colombo, Sri Lanka. The process involves four rounds of container handling, increasing both time and cost.
Even so, Indian importers continue sourcing from Bangladesh, taking advantage of duty-free benefits under bilateral trade arrangements. “The rise in apparel exports to India is really positive,” said Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). “Although the sea route takes longer, it is still more affordable than sourcing from other countries. That’s why exports haven’t faced major challenges.”
According to National Board of Revenue (NBR) data, Bangladesh exported apparel worth USD 80.6 million to India in August, up 16.5 per cent from USD 69.2 million in the same month last year. In the three months following the ban (June–August), exports rose 15 per cent year-on-year to USD 183.5 million.
Before the restrictions, 69 per cent of apparel shipments went through land ports, 30 per cent via Chittagong port, and around 1 per cent by air. Now, all exports are routed through Chittagong.
Meanwhile, Export Promotion Bureau (EPB) data show Bangladesh’s total apparel exports fell by 4.75 per cent year-on-year in August to USD 3.17 billion. This underlines the contrast: while global demand slowed, India-bound exports increased.
Overall exports to India are also rising. In the first two months of FY2025–26, Bangladesh exported goods worth USD 314.2 million to India, up 4 per cent from USD 302.8 million a year earlier.
India is Bangladesh’s eighth-largest export destination and its biggest in Asia. In FY2024–25, Bangladesh shipped nearly USD 1.82 billion worth of goods to India, of which apparel made up 36 per cent.
NBR data reveal Trent Limited, a Tata Group subsidiary, is Bangladesh’s largest apparel buyer in India, importing USD 11.4 million worth of garments in August alone — about 14 per cent of total exports. Other global retailers sourcing Bangladesh-made apparel for the Indian market include H&M, Levi Strauss, M&S, Puma, Uniqlo, Decathlon, Pepe Jeans, and Bestseller.
