India’s fashion retailers are feeling the pinch of a supply disruption that has followed the government’s ban on importing readymade garments from Bangladesh through land routes. The directive, issued by the Directorate General of Foreign Trade on May 17, now allows shipments only through Kolkata and Nhava Sheva ports, stretching delivery timelines by two to three weeks.
The impact is most evident in the affordable fashion category, with chains such as Zudio, Lifestyle, Reliance Retail’s fashion arms, and international players including H&M and Marks & Spencer reporting thinner shelves. The squeeze has come at a time when retailers are simultaneously clearing end-of-season sales and pushing fresh collections ahead of the festive season.
“Some categories which we source from Bangladesh have been delayed, and this requires tighter planning to ensure our stores stay stocked,” said Devarajan Iyer, chief executive of Lifestyle International, which runs India’s largest departmental store chain.
Bangladesh is the world’s second-largest garment exporter after China and a key supplier for India’s mass-market segment, particularly for products priced below ₹1,000. Imports of readymade garments from the country dropped 25% year-on-year in recent months, according to Sanjay Jain, chairman of the textile expert panel at the Indian Chamber of Commerce. India imported $254.44 million worth of apparel from Bangladesh between January and June this year, marginally higher than $245.84 million in the same period of 2024, ITC and CITI data shows.
While larger retailers are moving some sourcing to domestic manufacturers, industry watchers warn of higher costs. Rahul Mehta of the Clothing Manufacturers Association of India estimates a 3-5% rise due to increased shipping expenses. Smaller traders, heavily reliant on low-cost, quick-turnaround shipments from across the border, are expected to face the sharpest blow.
