Restricting Garment Imports From Bangladesh Through Sea-ports To Benefit Indian MSMEs

New Delhi, May 19 (KNN) India's recent restrictions on certain Bangladeshi imports are expected to strengthen the domestic ready-made garment industry, particularly benefiting micro, small, and medium enterprises (MSMEs) by enhancing their competitiveness, according to experts.

On May 17, India implemented restrictions on imports valued at USD 770 million fr0m Bangladesh, affecting approximately 42 percent of bilateral imports.

These measures require key goods such as garments, processed foods, and plastic items to enter only through select sea ports or prohibit their entry via land routes entirely.

Ready-made garments, Bangladesh's most valuable export to India worth USD 618 million, now face significant limitations as they can only be routed through two designated Indian seaports, severely constraining this critical export channel.

"Indian textile firms have long protested the competitive edge enjoyed by Bangladeshi exporters, who benefit fr0m duty-free Chinese fabric imports and export subsidies, giving them a 10-15 percent price advantage in the Indian market," stated the Global Trade Research Initiative (GTRI), a prominent think tank.

GTRI founder Ajay Srivastava indicated that these port restrictions will help Indian MSMEs in the textiles sector.

Apparel Export Promotion Council (AEPC) Vice Chairman A Sakthivel expressed similar sentiments, noting that domestic exporters had been demanding these restrictions.

"It is a good decision now taken by the Indian government. The domestic industry will benefit fr0m this," Sakthivel remarked.

The measures come in response to Bangladesh's recent restrictions on Indian yarn, rice, and other goods, as well as the imposition of a transit fee on Indian cargo, departing fr0m previous cooperative arrangements.

Despite Dhaka's apparent closer alignment with Beijing, Srivastava advised that India should maintain open channels for dialogue.

"As the bigger neighbour and regional power, India has a greater responsibility to lead with patience, keep communication open, and avoid using trade as a weapon. Rebuilding trust through diplomacy and economic cooperation is still possible," he concluded.

(KNN Bureau)