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Date: 20/05/2025

MSMEs seen benefiting from import restrictions on B’desh

Restrictions imposed by India on certain Bangladeshi goods will help the domestic readymade garment industry, particularly MSMEs, to enhance their competitiveness. On May 17, India restricted imports worth USD 770 million from Bangladesh, covering nearly 42% of bilateral imports. Key goods like garments, processed foods and plastic items are now limited to select sea ports or barred from land routes entirely. Readymade garments, valued at USD 618 million, now face strict routing through only two Indian seaports. This severely limits Bangladesh’s most valuable export channel to India. According to the think tank Global Trade Research Initiative (GTRI), Indian textile firms have long protested the competitive edge enjoyed by Bangladeshi exporters, who benefit from duty-free Chinese fabric imports and export subsidies, giving them a 10-15% price advantage in the Indian market, as per a report.
 
Source: Exim News Service: New Delhi, May 19