South Asia

Apparel exports to India see sharp increase despite restrictions

Published: 13:13, 9 September 2025

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 last four months, India has slapped restrictions on imports through land ports not once but three separate times. Apparel was first hit back on May 17. Under these rules, Indian importers can’t bring in ready-made garments through land ports anymore. Instead, shipments have to move through Kolkata or Mumbai’s Nhava Sheva port.
That sounds manageable on paper, but in reality, it’s messy. To reach Nhava Sheva, a container leaving Chittagong port in Bangladesh has to pass through Sri Lanka’s Colombo port. That means goods are loaded and unloaded four separate times. The process eats up both time and money.
Even so, demand hasn’t dried up. Exporters say Indian buyers still find it easier and cheaper to stick with Bangladesh compared to sourcing from other countries. The reason is simple: duty-free benefits. Indian importers save money when they buy from Bangladesh, which makes up for the higher shipping costs.
The numbers back this up. According to the National Board of Revenue (NBR), Bangladesh exported apparel worth $80.6 million to India in August 2025, up from $69.2 million during the same month last year. That’s a solid 16.5% jump. And if you look at the bigger picture, the three-month stretch from June to August saw exports worth $183.5 million—15% higher than the $159.1 million shipped in the same quarter last year, even with the restrictions in place.
Right now, all apparel exports to India are going through Chittagong seaport. Before the ban, things were more balanced: about 69% of garments crossed through land ports, 30% left from Chittagong, and a tiny fraction—around 1%—flew out by air.
India is no small market either. It’s Bangladesh’s eighth-largest export destination overall and the biggest one within Asia. In the last fiscal year (2024–25), Bangladesh exported nearly $1.82 billion worth of goods to India. Of that, 36% was apparel.