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Fashion Value Chain
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.
News18
19-05-2025
- Business
- News18
India's Port Curbs On Bangladesh Garments To Boost Indian Textiles Business By Rs 2,000 Crore
Last Updated: India's latest move to restrict garment imports from Bangladesh via land routes is expected to boost the domestic textile industry India's latest move to restrict garment imports from Bangladesh via land routes is expected to boost the domestic textile industry, creating a potential opportunity of more than Rs 1,000 crore. The decision, aimed at curbing the indirect influx of Chinese fabric and supporting local production, may temporarily disrupt apparel supply chains and slightly increase consumer prices during the winter season. The Directorate General of Foreign Trade (DGFT) issued a notification barring imports of garments and related products through land ports, while still permitting entry via Kolkata and Nhava Sheva seaports. This action addresses rising concerns about the duty-free inflow of garments from Bangladesh, which has been exploiting India's zero-duty policy under the South Asian Free Trade Agreement (SAFTA). According to Rakesh Mehra, Chairman of the Confederation of Indian Textile Industry (CITI), the decision comes in response to Bangladesh's earlier move in April 2025 to restrict cotton yarn imports from India—a product that makes up nearly 45% of India's total cotton yarn exports. He noted that this strategic step would not only curb backdoor entries but also help Indian exporters redirect their yarn to local apparel makers. However, industry players expect some short-term disruptions for Indian and global apparel brands operating in the country. Popular items like T-shirts and jeans could see a price rise of 2–3% during the upcoming winter season due to supply chain realignments. First Published: May 19, 2025, 13:00 IST
Time of India
19-05-2025
- Business
- Time of India
Bangladesh port curbs may shift Rs 1,000 crore textile trade to Indian manufacturers & curb Chinese fabric backdoor
NEW DELHI: India's recent decision to restrict imports from Bangladesh through land routes could open up a Rs 1,000–2,000 crore opportunity for the domestic textile sector, according to industry insiders. However, the move may temporarily disrupt supply chains of major Indian and global apparel brands, potentially causing a 2–3% rise in prices of popular items like T-shirts and denims during the winter season. The Directorate General of Foreign Trade (DGFT), in a notification issued on Saturday, banned garment and other product imports from Bangladesh via land ports. However, shipments are still permitted through the Kolkata and Nhava Sheva seaports. The decision comes amid rising concerns over a surge in duty-free textile imports from Bangladesh, enabled by India's zero-duty policy. Industry representatives say the move is expected to boost local manufacturing, reduce reliance on foreign-made garments, and curb the indirect entry of Chinese fabric routed through Bangladesh — which currently attracts a 20% import duty if shipped directly from China. 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. According to industry estimates, imports meet 1–2% of India's apparel consumption, with Bangladesh accounting for 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. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
18-05-2025
- Business
- Economic Times
Garment import restrictions from Bangladesh to benefit Indian cos: Industry
New Delhi: The suspension of import of readymade garments from Bangladesh through land ports is likely to temporarily impact buyers as their supply chains will be disrupted leading to higher cost and lead times, textile industry representatives said. India on Saturday imposed port restrictions on import of certain products such as readymade garments and processed food from Bangladesh, in response to similar measures imposed by Dhaka. Import of all kinds of readymade garments from Bangladesh shall not be allowed from any land port but would be permitted only through Nhava Sheva and Kolkata seaports. Bangladesh exports over $700 million (around Rs 6,000 crore) worth of readymade garments annually to India and 93% of the shipments enter India through land ports. Buyers will need to re-align their sourcing and for products with less diffrential in cost and quality, they would shift to Indian suppliers, exporters said. 'We can expect atleast Rs 1000 crore to replaced by Indian manufacturing,' said Sanjay K Jain, managing director, TT Ltd, a textile manufacturer and exporter. Trade experts said that the move will lead to costs escalation by 15-25% besides delays in shipments as land ports face less traffic than sea ports.'We have imposed this measure in retaliation to Bangladesh's actions,' said an official, ruling out any further action on the issue.'This will enable Indian cotton yarn exporters to redirect their supply to the domestic market to meet the potential demand gap created by reduced apparel imports. This could provide a much-needed boost to the Indian textile value chain by encouraging local sourcing and strengthening self-reliance in the apparel segment,' said Rakesh Mehra, chairman, the Confederation of Indian Textile per Ajay Sahai, director general, Federation of Indian Export Organisations, the restrictions will make Indian industry more competitive.'This move would also reduce the backdoor entry of Chinese fabrics into India that were getting converted in Bangladesh and being sent to India duty free. Fabrics if imported directly from China face 20% import duty,' Jain April 2025, Bangladesh imposed restrictions on the export of cotton yarn from India, which traditionally accounts for nearly 45% of India's total cotton yarn exports.
Time of India
18-05-2025
- Business
- Time of India
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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas Prices In Dubai Might Be More Affordable Than You Think Villas In Dubai | Search Ads Get Quote Undo 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. Live Events 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.
