India vs Bangladesh: Which Is Better for Towels?
Bangladesh is one of the largest garment exporters in the world, so buyers who already make clothing there often ask whether to add towels. Terry is a much smaller part of its textile sector than of India's, and almost all of its cotton is imported.
Bangladesh's real advantage is duty: 0% into the EU and UK, while Indian towels pay 12% in the EU until the India-EU FTA is in force. This page sets out when that wins and when it does not.
Choose India when
- You need hotel or luxury towels above 550 GSM, or several towel types on one order
- You ship to the UK, UAE, Australia or the US, where Bangladesh has no duty edge over India
- You want a trial run before a container
- Lead time matters and you cannot wait for imported yarn
Choose Bangladesh when
- You import into the EU, buy simple towels in container volumes, and the 12-point duty gap decides your margin
- You already run a garment supply base in Bangladesh with audits in place
- Your contract ends before 2029, when the current EU duty-free access is due to change
India vs Bangladesh: Side by Side
| Factor | India | Bangladesh |
|---|---|---|
| Towel clusters | Solapur (Maharashtra), Karur and Erode (Tamil Nadu), Panipat (Haryana), large integrated mills in Gujarat and Punjab, plus Kerala export houses | Dhaka, Gazipur, Narayanganj and Chattogram |
| Export ports | Mundra, Nhava Sheva, Chennai, Tuticorin, Cochin, Vizhinjam | Chattogram (Chittagong), Mongla |
| Cotton | Grown at home. India is one of the two largest cotton producers in the world, so yarn does not have to be imported. | Almost none grown at home. Mills import cotton or yarn, much of it from India. |
| Size of the terry towel sector | Large. Hundreds of terry units across several clusters, plus large integrated mills. | Small next to garments. A limited number of specialist terry mills. |
| GSM range | 300-700 GSM, from economy institutional to luxury hotel. | Mostly 350-550 GSM. Heavier luxury terry is harder to find. |
| Yarn supply | Spun at home from home-grown cotton. | Cotton or yarn imported, often from India, which adds weeks and cost. |
| Product range on one order | Towels, bath mats, robes and bed linen from one exporter. | Usually towels only, or towels next to a garment programme. |
| Production lead time | 30-45 days after sample approval. | 45-60 days is common when yarn has to be imported first. |
| Smallest practical order | Trial runs from 500 pcs through export houses. | Mills are set up for container volumes; small trial runs are rare. |
| Sea transit to North Europe | About 21-28 days from Cochin. | About 30-40 days, usually with transhipment via Colombo or Singapore. |
| Import duty: European Union | 12% (GSP withdrawn 2026-28; 0% once the India-EU FTA is in force) | 0% under EBA, until 2029 |
| Import duty: United Kingdom | 0% under CETA (in force 15 Jul 2026) | 0% under DCTS Comprehensive |
| Import duty: United States | MFN + 10% Section 301 | MFN + 10% Section 301 |
| Import duty: UAE and GCC | 0% in the UAE (CEPA); 5% elsewhere in the GCC | 5% |
| Import duty: Australia | 0% under ECTA | 0% as a least-developed country (review after Nov 2026) |
Duty rows are for cotton terry towels (HS 6302.60) as of October 2026. They are planning figures, not customs advice. Confirm your exact line before you price:
India: Strengths and Watch-outs
The widest range of any origin, from economy institutional terry to 700 GSM hotel towels, with home-grown cotton and English-speaking export desks.
- +Home-grown cotton and spinning, so yarn cost and supply are not exposed to imports
- +Every tier in one country: economy, mid-range hotel, 600-700 GSM luxury, kitchen, beach and spa
- +Duty-free into the UK (CETA, in force 15 July 2026), the UAE (CEPA) and Australia (ECTA)
- +Small trial runs are possible through export houses, not only full containers
- +English is the working language of the export trade
- !EU buyers pay 12% duty on Indian towels until the India-EU FTA enters into force, while Pakistan, Bangladesh and Türkiye enter at 0%
- !US buyers now pay a 10% Section 301 duty on top of MFN, the same as Pakistan and Bangladesh
- !Quality varies widely between clusters and units, so specs and inspection must be written down
Best for: UK, GCC and Australian buyers, hotel and private-label programmes that want several towel types on one order, and anyone starting with a trial run.
Bangladesh: Strengths and Watch-outs
A garment giant with a smaller terry towel sector, attractive mainly for 0% duty into the EU and UK, which lasts until 2029.
- +0% EU duty under Everything But Arms, kept until 2029 after the November 2026 graduation from least-developed-country status
- +0% UK duty under DCTS Comprehensive Preferences
- +Low labour cost and large garment-sector compliance infrastructure
- !Terry is a small part of the textile sector, so the choice of specialist towel mills is narrow
- !Imported cotton and yarn add lead time and cost
- !EU duty-free access after 2029 depends on a new scheme or agreement not yet in place
- !Chattogram port congestion can stretch transit times
- !US buyers pay the same 10% Section 301 duty as on Indian towels
Best for: EU and UK buyers who already source garments in Bangladesh and want to add simple towels to the same supply base.
Where Anabyn Fits
Anabyn is an Indian export house in Thrissur, Kerala. We place and inspect towel orders across specialist Indian units and ship from Cochin or Vizhinjam. Trial runs start at 500 pieces. Wholesale pricing starts at 2,000 pieces per SKU. We only supply Indian-origin towels, so read the Bangladesh column as a fair picture of the alternative, not a pitch against it.
Comparing more than two origins? See the five-country towel sourcing comparison or run your own numbers in the import duty calculator.
Questions Buyers Ask
Are there good towel manufacturers in Bangladesh?
Yes, there are capable terry towel mills around Dhaka, Gazipur, Narayanganj and Chattogram, and some export to European retailers. The sector is small next to Bangladesh's garment industry, so there are fewer specialists to choose from than in India or Pakistan. Check each mill's export record and audit status before you place an order.
Are towels cheaper from Bangladesh or India?
Factory prices are close for simple 400-500 GSM towels. Bangladesh often has lower labour cost but pays more for imported yarn. The bigger difference is duty: into the EU, Bangladeshi towels pay 0% and Indian towels pay 12% until the India-EU FTA is in force, so the landed price in the EU usually favours Bangladesh. Into the UK, US, UAE and Australia that edge disappears.
What happens to Bangladesh's EU duty-free access after LDC graduation?
Bangladesh leaves least-developed-country status on 24 November 2026. The EU keeps its Everything But Arms duty-free access in place for a three-year transition, to 2029. After that, Bangladesh needs to qualify for GSP+ or sign a trade agreement to keep 0% duty. Buyers signing multi-year contracts should price that risk.
Does Bangladesh grow its own cotton for towels?
Hardly any. Bangladesh imports almost all of its cotton and much of its yarn, a large share of it from India. That is one reason Indian mills can often quote shorter lead times on terry, since the yarn is already in the country.
What is the US duty on towels from Bangladesh and India?
Both pay the same US MFN rate for cotton terry towels (roughly 9.1-11.4% depending on the HTS line), plus a 10% Section 301 duty that applies to both countries from 24 July 2026. Neither origin has a US duty advantage over the other. Check the current total on the USITC HTS before pricing, as US rules have changed several times since 2025.
Can I source towels from India and garments from Bangladesh?
Yes, and many buyers do. Keep the garment programme where your audits already are and test towels from India on a trial run. Anabyn's terms: 500 pcs trial / 2,000 pcs wholesale, samples 2 free pcs per spec, you pay courier only.
Test India Against Your Bangladeshi Quote
Send the spec you buy today: GSM, sizes, colours and yearly quantity. We reply with FOB pricing and free samples so you can compare like for like.
Or use the quote form.