India's Port Curbs On Bangladesh Garments To Boost Indian Textiles Business By Rs 2,000 Crore
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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
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