Textile crisis between India and Bangladesh: Inside a logistical lockdown

Fashion United

20-05-2025

By blocking imports of Bangladeshi garments via land, India is indirectly closing off its neighbour's access to its ports and airports, which are essential for its global exports. The decision appears to be a form of diplomatic retaliation.
On May 17, 2025, India announced the suspension of several Bangladeshi imports via its land border posts, including ready-to-wear garments. This sudden measure, reported by The Times of India, had an immediate effect. More than 30 lorries transporting garments were stranded in the neutral zone between Benapole (Bangladesh) and Petrapole (India), with an estimated value of 560,000 euros.
The ban also concerns other products, such as eggs, fish, onions and mustard seeds. However, it is the impact on the textile sector, the backbone of Bangladeshi exports, that is of greatest concern. In 2024, over a third of exports to India passed through these land corridors, before being redirected to ports such as Haldia or Jawaharlal Nehru (Mumbai) for shipment to Europe or the US. A logistical measure with strong political undertones
This decision did not come out of nowhere. It extends a movement that began in April, when New Delhi removed a transhipment facility granted to its neighbour since 2020. Thanks to this bilateral agreement, Bangladeshi exporters could transit via Indian ports and airports to ship their products to third-party markets, without entering the Indian market or passing through local customs.
This logistical facility, which is strategic for Bangladesh, served several objectives. It relieved the overloaded port of Chittagong, shortened shipping times to Western markets, and offered a competitive alternative to sometimes-failing local infrastructure. The textile sector, which accounts for over 80 percent of Bangladeshi exports, was the main beneficiary.
New Delhi justifies its about-face for technical reasons. These include the overloading of its own infrastructure, prioritisation of Indian exporters, and the need for better 'customs clarity', according to a notice published by the Central Board of Indirect Taxes and Customs (CBIC). However, many analysts see it as a disguised political move. Pressure on Dhaka and strategic repositioning
Behind this technical decision lies a logic of power. Bangladesh is currently governed by an interim authority led by the economist Muhammad Yunus. In an institutional context marked by political fragility and internal tensions, New Delhi seems to be taking advantage of the situation to assert its regional influence. This imbalance reinforces its diplomatic room for manoeuvre, as bilateral relations have become strained in recent months, particularly around infrastructure projects supported by Beijing in Bangladesh.
The land ban acts as an indirect lock. Officially, India has not closed its ports to Bangladesh. However, by blocking the land transport of cargo to these infrastructures, it makes access almost impossible. Without another rapid logistical solution, Bangladeshi companies are forced to reorganise their entire export chain. A blow to the Bangladeshi textile industry
For textile manufacturers in Bangladesh, the situation is critical. Sea freight via national ports (Chittagong or Mongla) is slower, more expensive, and often congested. Direct air freight to Europe or North America, meanwhile, is economically inaccessible for most small to medium-sized enterprises in the sector.
'This decision risks causing delivery delays, contract breaches and a loss of international competitiveness,' warned a representative of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), quoted by The Economic Times. The consequences could also be felt by Western brands, customers of Bangladesh, particularly in fast-moving segments or e-commerce deliveries. In India, industrialists are divided
On the Indian side, the measure has been met with mixed reactions. While some textile manufacturers welcome the reduction in low-cost foreign competition, distributors and retail chains are concerned. Bangladesh remains a major supplier of entry-level clothing, popular with Indian consumers with low purchasing power. In the event of shortages, prices could soar for certain items.
'In the short term, local producers will benefit. However, in the medium term, this risks creating an imbalance in the domestic market,' admitted an executive at the Apparel Export Promotion Council (AEPC), also quoted by The Economic Times. A step backwards on regional integration?
This logistical disruption also raises the question of the future of regional cooperation. Since 2010, India and Bangladesh have increased trade facilitation agreements, driven by a vision of South Asian economic integration. The unilateral suspension of these facilities, without notice, risks eroding mutual trust.
The Bangladeshi authorities have expressed their 'serious concern' and have begun discussions with New Delhi. However, the prospects for recovery seem slim in the immediate future. Especially as alternatives are limited. Routes through China or Myanmar are politically and logistically riskier, while Sri Lankan ports remain poorly connected to the Bangladeshi land network. A crisis with global side effects?
As the global textile industry remains fragile, in a context of cost inflation and time pressure, this decision could have repercussions far beyond South Asia. European and North American brands, dependent on Bangladeshi factories, could experience delays in the autumn/winter 2025 collections, or even revise their sourcing strategy if instability persists.
In the long term, the suspension of land transit by India could mark a turning point. It highlights the fragility of international logistics chains in the face of geopolitical decisions, but also the need for exporting countries such as Bangladesh to strengthen their port autonomy and trade resilience. This article was translated to English using an AI tool.
FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at [e-mail]