The Office of the Director General of Foreign Trade (DGFT) recently announced a suspension on imports of all categories of Readymade Garments (RMG) from Bangladesh when routed through land ports into India.
Trade statistics reveal that in 2024, India imported RMG valued at approximately US$ 634 million from Bangladesh, with an impressive compound annual growth rate (CAGR) of 19% over the last decade. Since most of these imports traditionally moved through land routes, the newly imposed restriction is expected to significantly affect the volume and flow of these garment imports.
Addressing this development, Shri Rakesh Mehra, Chairman of the Confederation of Indian Textile Industry (CITI), remarked, “In April 2025, Bangladesh introduced restrictions on cotton yarn exports from India, which typically represent nearly 45% of India’s total cotton yarn export volume. India’s recent action is perceived as a firm and calculated response to Bangladesh’s unilateral trade limitations.”
Shri Mehra further emphasized that this Indian policy shift is likely to drive up the costs of importing Bangladeshi garments, while simultaneously opening fresh avenues for domestic RMG producers. Moreover, Indian cotton yarn exporters may find new demand within the domestic market to compensate for the potential shortfall caused by Bangladesh’s restrictions. This situation could offer a crucial stimulus to the Indian textile value chain by promoting local sourcing and reinforcing India’s goal of self-reliance in the apparel manufacturing sector.
