Datanomics: Imports of readymade garments from B'desh to suffer amid curbs

As on 31st March 2024, India had 12 operational land ports, out of which 6 were with Bangladesh. Two out of these six - Dawki and Sabroom became operational in 2023 and 2024 respectively

India has disallowed import of ready-made garments from Bangladesh via its land ports even as there are no curbs through the Nhava Sheva and Kolkata seaports.

 

Moreover, import of other products has been stopped via India's land custom stations and integrated check points. 

 

The move came after Dhaka, under Muhammad Yunus, imposed trade restrictions on Indian exports to Bangladesh and a transit fee on Indian goods moving through the country.

 

As on March 31, 2024, India had 12 operational land ports, of which six were with Bangladesh. Two of these six — Dawki and Sabroom — became operational in 2023 and 2024. respectively.

 

(Chart1):   

 

In FY24, around 52 per cent of total imports from Bangladesh into India came through these land ports. Nearly 92 per cent of all imports from Dhaka through the land ports took place via Petrapole, the largest land port in South Asia. 

 

The share of ready-made garments made of cotton and man-made fibres accounted for 44 per cent of India’s imports from Bangladesh through Petrapole in FY24.

 

(Chart 2): 

 

Ready-made garments constituted bulk of the Indian imports from Bangladesh. In FY25 (April 2024-February 2025), garment imports into India touched $340.6 million, surpassing FY24 numbers.

 

Port restrictions have been imposed on around one-fourth of all Indian imports from Bangladesh (FY25). These goods will now be transported via sea or air, thereby increasing transportation cost. This will drive up their prices in the Indian market.