Garment import curbs likely to make Bangladesh exports to India costlier: Textile industry
India's decision to allow entry of ready-made garments from Bangladesh only through Kolkata and Nhava Sheva sea ports is likely to increase the cost of apparel imports from the neighbouring nation, textile industry bodies said on Sunday. They also termed the move a timely step towards preventing the dumping of foreign-made garments and strengthening India's self-reliance in apparel production.
India on Saturday decided to allow entry of ready-made garments from Bangladesh only through Kolkata and Nhava Sheva sea ports and barred imports of a range of consumer items through land transit posts in the northeast -- a move that is set to significantly hit Dhaka's trade with New Delhi.
Besides ready-made garments (RMG), plastics, wooden furniture, carbonated drinks, processed food items, fruit flavoured drinks, cotton and cotton yard waste will not be allowed to enter India through land customs stations and check posts in Meghalaya, Assam, Tripura and Mizoram, and Phulbari and Changrabandha in West Bengal, according to a government notification.
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The new restrictions for Bangladeshi consumer goods came five weeks after New Delhi ended a nearly five-year-old arrangement for trans-shipment of Bangladeshi export cargo to third countries via Indian airports and ports.
As per the trade data, India imported RMG worth USD 634 million in 2024, which has increased at a CAGR of 19 per cent during the last 10 years.
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Majority of these imports were taking place through land route only and hence this restriction is likely to have a considerable impact on these RMG imports.
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 per cent 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 further highlighted that this decision is likely to increase cost of imports of Bangladesh garments and create new opportunities for domestic RMG manufacturers, while also enabling Indian cotton yarn exporters to redirect their supply to the domestic market to meet the potential demand gap created.
Santosh Katariya, President, Clothing Manufacturers Association of India (CMAI), said the move addresses the industry's long-standing concern regarding the unchecked inflow of low-cost apparel into the Indian retail market, which was adversely impacting domestic manufacturers, particularly MSMEs.
"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.
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