High Fashion Industry Faces Challenges

Swift Summary

• Indian clothing retailers such as Marks & Spencer, H&M, Zudio, and Lifestyle are facing inventory shortages due to a ban on road imports of readymade garments from Bangladesh.
• The new policy, effective May 17, permits imports only through seaports in Kolkata and Nhava Sheva (Mumbai), causing delays of 2-3 weeks.
• bangladesh is the second-largest global exporter of garments and plays a significant role as a supplier for india’s affordable fashion segment.
• delays are more noticeable during the transition to fresh collections alongside ongoing end-of-season sales.
• Retailers like Reliance’s Zudio and Aditya Birla are gradually increasing domestic production to mitigate the impact. Some product categories still depend on Bangladeshi imports but now require longer planning cycles.
• Shipping costs have risen by 3-5%, impacting smaller traders heavily reliant on low-cost supplies from Bangladesh.
• Imports of readymade garments from Bangladesh declined by 25% year-on-year while total apparel imports for January-June 2025 grew slightly by 3%.

Image: Delay in garment supplies has disrupted sales in India’s affordable fashion segment (credit: iStock).

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Indian Opinion Analysis
The directive restricting garment imports from bangladesh via land ports reflects India’s shifting trade priorities while aiming to balance international reliance with domestic sector growth opportunities. While the move enhances scope for local production-a key component of “Atmanirbhar Bharat”-it inadvertently disrupts supply chains critical for retail affordability and market consistency in fast-moving product lines like clothing.

Small traders relying on immediate cross-border transport bear disproportionate brunt under these restrictions as freight transition costs rise steadily during adjustment periods-highlighting varying competitive risks among major versus marginal players entirely shaped over multi-year dependencies without alternatives . Reasonably inputs channels tightening could taxed markets commandingIndia restructuring advantage if few transitions mishandled