From Zudio to Lifestyle, fashion retailers struggle with inventory crunch post import ban from Bangladesh

Mumbai | Kolkata: Several clothing retailers from Marks & Spencer and H&M to Zudio and Lifestyle are facing short supplies in their stores nearly three months after India banned road imports of readymade garments from Bangladesh, industry executives said.

Readymade garments from the neighbouring country are now allowed only through seaports of Kolkata and Nhava Sheva in Mumbai. While the policy change has led to delays of 2-3 weeks in merchandise sourcing, especially in lower-priced fashion, the impact is felt now as retailers start stocking fresh collections alongside end-of-season sales.

“The shortfall is more visible now,” a senior executive at a global apparel brand said on condition of anonymity.

Bangladesh, the world’s second-largest exporter of garments after China, is a crucial supplier for Indian brands, especially in the affordable segment.

The Directorate General of Foreign Trade (DGFT), in a directive issued on May 17, prohibited imports of all kinds of readymade garments from Bangladesh through land ports.

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Most retailers including Lifestyle, Reliance and Aditya Birla have been gradually shifting some of their production domestically after the policy shift.”While we have shifted some of our sourcing within the country, there are a few categories which we import from Bangladesh and have been delayed due to the policy change,” said Devarajan Iyer, chief executive officer of Lifestyle International, India’s biggest departmental chain. “We will have to plan ahead to ensure steady supplies of fresh merchandise to minimise its impact on sales.”Rahul Mehta, chief mentor of Clothing Manufacturers Association of India (CMAI) and managing director of garment sourcing firm Creative Garments, warned that while cost will increase by 3-5% due to higher shipping costs, the impact will not be immediate as many Indian buyers had secured contracts few months in advance.

“However, smaller traders and grey market operators, who depend heavily on quick and low-cost supplies from Bangladesh, are expected to get impacted due to the policy shift,” Mehta said.

The move has led to significant delays in inventory replenishment, especially in the affordable fashion segment.

“Imports of readymade garments from Bangladesh have dwindled by 25% year-on-year,” said Sanjay Jain, managing director of textile and apparel firm TT Industries and chairman of the textile expert panel of the Indian Chamber of Commerce. “These are garments which are priced lower than ₹1,000 and are sold by local retailers and brands.”

India imported apparels worth $254.44 million from Bangladesh during January-June 2025, up 3.5% from $245.84 million a year earlier, according to data from International Trade Centre (ITC) and Confederation of Indian Textile Industry (CITI).

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