Bangladesh Port Curbs May Shift ₹1,000 Cr Textile Trade to India

• India has restricted apparel imports from Bangladesh via land routes, aiming to curb duty-free inflow and support domestic textile manufacturers.
• The move is seen as a response to Bangladesh's earlier restriction on Indian cotton yarn exports and may boost local production and reduce Chinese fabric entry.
• While prices of items like T-shirts and denims may rise 2–3%, industry leaders say the decision strengthens MSMEs and self-reliance in apparel manufacturing.

India’s recent restriction of imports from Bangladesh through land routes, may present a Rs 1,000–2,000 crore market share opportunity for the domestic textile sector, according to industry insiders. However, this restriction may move temporary disruption of supply chains of major Indian and global apparel brands and even lead to 2–3% increase in the prices of popular items, like T-shirts and denims, for the winter season.

In a notification announced by the Directorate General of Foreign Trade (DGFT), garment and other products from Bangladesh through land ports will be banned - however, Indian garment manufacturers can still Import from Bangladesh through the sea ports of Kolkata and Nhava Sheva. The decision comes amid increasing concern over the surge of India's duty-free textile imports from Bangladesh by India’s zero duty policy.

Industry representatives say that the move is likely to encourage domestic manufacturing, reduce dependence on foreign-made clothing, and prevent the indirect entry of Chinese fabric via Bangladesh which currently has a 20 percent import duty when shipped direct from China.

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Rakesh Mehra, Chairman of the Confederation of Indian Textile Industry (CITI), stated, "In April 2025, Bangladesh imposed a restriction on the export of cotton yarn from India, which traditionally accounts for nearly 45 percent of India's total cotton yarn exports. The latest move by the Government of India is seen as a strong and strategic response to this unilateral trade restriction by Bangladesh”.

He also emphasized that this will likely lead to a rise in cost of imports of Bangladesh garments which will create additional opportunities for domestic RMG manufacturers but will also allow Indian cotton yarn exporters to shift their supply into the domestic market which may help address this gap in demand.

Santosh Katariya, the President, Clothing Manufacturers Association of India (CMAI) stated that this move has addressed the industry's worry for a long period of time in regard to the excess of low-cost apparel flowing into the Indian retail market, which is affecting domestic manufacturers especially the MSME categories.

"The decision is a timely step towards preventing the dumping of foreign-made garments and strengthening India's self-reliance in apparel production. At the same time, we believe this policy must be complemented with continued support for capacity building and ease of doing business for Indian manufacturers," he added.

According to Industry estimates, imports account for 1-2% of India’s apparel consumption, and that Bangladesh was contributing about 35% of total garment imports.

“With this move (ban on imports via land routes), the reduction in imports will help strengthen domestic production and support local manufacturers,” Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation told ET. The policy change could also hit supply chains of many apparel brands, including MSME units and large-format retailers.