Sign in Subscribe
Exports

India's Blockade on Bangladesh's Land Port Raises Concerns for Garment Exports

Strategic Insights

— 1 min read

As tensions in India-Bangladesh trade relations escalate, the recent decision by New Delhi to block land port entry for goods coming from Bangladesh has raised concerns for the country's garment exports. Bangladesh, already the second-largest exporter of readymade garments after China, stands to face significant losses if India adheres to this decision. With India signing a Free Trade Agreement (FTA) with the UK, it is poised to boost its garment exports, potentially hurting Bangladesh's industry.

Key Takeaways:

  • Bangladesh's ready-made garment exports grew by 7.23% in 2024, reaching $38.48 billion, according to the Export Promotion Bureau (EPB).
  • India blocked the land port entry for goods coming from Bangladesh, including ready-made garment (RMG), cotton waste, PVC products, carbonated beverages, and wooden furniture.
  • However, these goods can be exported using the Kolkata and Nhava Sheva sea ports, which may affect Bangladesh's garment exports.
  • The decision may hit Bangladesh's garment industry, making its exports less competitive due to increased costs and delayed deliveries.
  • India's FTA with the UK may boost its garment exports, particularly to the EU.
  • Bangladeshi garment exports to India may decrease, as India looks to increase its textile and apparel exports.
  • The share of textile and apparel (T&A) in India's total exports stood at a significant 8.21% in 2023-24, with RMG accounting for the largest share (41%) of the total.

Statistics:

  • Bangladesh's exports of readymade garments totaled $36 billion in 2023.
  • The country's ready-made garment exports grew by 7.23% in 2024, reaching $38.48 billion (EPB).
  • India was the 6th largest exporter of Textiles & Apparel in the world in 2023, according to the Press Information Bureau.
  • The share of textile and apparel (T&A) in India's total exports stood at 8.21% in 2023-24 (Press Information Bureau).
  • The total value of India's textile and apparel exports from April to October of FY 2024-25 was $21.358 billion.

Sources:

  • "Bangladesh exports $36bn worth of garments in 2023" [none mentioned]
  • "India blocks Bangladeshi goods at land port, drives traders to sea ports" [no source mentioned]
  • "India's textile & apparel exports stand at 8.21% in FY2024" - Press Information Bureau
  • "Export Promotion Bureau (EPB) - Bangladesh" [none mentioned]
  • "India-UK FTA to boost garment exports" - [no source mentioned]
  • "DNA (Daily News & Analysis) - Copyright 2010 Diligent Media Corporation Ltd. All Rights Reserved. Distributed by Contify.com"

Read more