19-05-2025
- Business
- Fashion Value Chain
India Suspends Bangladesh RMG Imports via Land Routes
The Indian Directorate General of Foreign Trade (DGFT) has announced a suspension on all readymade garment (RMG) imports from Bangladesh through land routes. This decision, expected to raise the cost of Bangladeshi apparel in India, comes as a strategic counter to Bangladesh's recent restrictions on Indian cotton yarn exports.
India imported RMGs worth $634 million from Bangladesh in 2024, with the majority entering via land ports. The abrupt halt is likely to disrupt this trade flow, leading to costlier apparel imports from Bangladesh.
Confederation of Indian Textile Industry (CITI) Chairman Shri Rakesh Mehra noted that Bangladesh's April 2025 restriction on cotton yarn—accounting for nearly 45% of India's total yarn exports—prompted this retaliatory move by India. He emphasized that the shift will not only curb reliance on Bangladeshi imports but also create opportunities for Indian RMG manufacturers.
According to Mehra, domestic textile players can benefit from redirected yarn supplies and rising demand for locally made garments, ultimately bolstering India's apparel ecosystem and promoting self-sufficiency across the textile value chain.
