Readymade garment makers, particularly the MSMEs, could actually benefit from the new import curbs as it reduces competition in domestic markets
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Bloomberg
Despite the imposition of import curbs on certain goods from Bangladesh, domestic FMCG companies said it is ‘business as usual’ – even for those that have investments in the neighbouring country.
Readymade garment makers, particularly the micro, small, and medium enterprises (MSMEs), could actually benefit from the new import curbs. A major restriction imposed from May 17 has been disallowing entry of readymade garments through all land and sea ports, except Nhava Sheva in Mumbai and Kolkata (Khidderpore and Haldia) ports.
According to Santosh Katariya, President, Clothing Manufacturers Association of India (CMAI), port restriction of garment imports is a welcome move, as it “addresses the industry’s long-standing concern regarding the unchecked inflow of low-cost apparel here.”
“The timely to preventing dumping of foreign-made garments will strengthen India’s self-reliance in apparel production,” he said, adding that this policy must be complemented with continued support for capacity building and ease of doing business.
Focus on local market
FMCG companies do not see any immediate impact of the import restrictions.
The DGFT had also stopped imports of processed food items – baked products, snacks, chips and confectionery – through any land port in Assam, Meghalaya, Tripura, Mizoram and two in West Bengal (Changrabandha and Fulbari).
A senior executive with a FMCG company told businessline, “Most FMCG companies, who have base in the country, produce for the local market. Hence, the import restrictions are unlikely to have an impact on their operations.”
Incidentally, companies have been witnessing some recovery in their Bangladesh businesses.
For instance, Marico during its recent earnings call said, Bangladesh posted double-digit growth in Q4 and FY25, “amid a challenging operating environment”. In fact, from a Parachute coconut oil-dominated portfolio (90 per cent), there is a change with premiumisation of product basket taking place there.
Infra projects may get delayed
Indian railway firms involved in projects/collaborations in Bangladesh could face delays due to disruptions in construction and operational activities. Logistical issues related to the movement of goods and materials for railway projects might escalate, affecting project timelines.
RITES – the export arm of Indian Railways – had an export order book of ₹1,360 crore as on March 31, 2025. This includes key international orders such as the Bangladesh order for 200 passenger coaches valued at ₹900 crore; the Mozambique order for 10 locomotives worth ₹300 crore, and three orders from South Africa (each for 3 locomotives) amounting to approximately ₹150 crore.
“The groundwork for the delivery of both locomotives and coaches has already commenced. Additionally, inter-country delegation visits and ongoing bilateral discussions continue to strengthen project coordination and execution,” a person in the know said.
In FY25, Indian steel exports to Bangladesh – primarily for infra projects – stood at ₹425 crore (in value), or 506,000 tonnes. This included 363,000 tonnes of sponge iron.
“Apart from select supply of sponge iron or billets, not much finished steel orders generally come in from Bangladesh,” a market participant said.
(With inputs from Meenakshi Verma Ambwani)
Published on May 19, 2025