India restricts Bangladesh garment imports via land ports, CITI sees boost for local RMG sector

In a major trade policy shift, the Indian government has restricted the import of all types of readymade garments (RMG) from Bangladesh through land ports, effective immediately. The Confederation of Indian Textile Industry (CITI) said the move is likely to raise import costs and open new avenues for domestic RMG manufacturers.

The decision follows a recent notification issued by the Directorate General of Foreign Trade (DGFT), which clarified that the restriction does not apply to goods in transit to Nepal or Bhutan. As per trade data, India imported garments worth $634 million from Bangladesh in 2024, with most shipments arriving via land ports. These imports have grown at a CAGR of 19 per cent over the past decade.

CITI Chairman Rakesh Mehra described the move as a response to Bangladesh’s April 2025 ban on cotton yarn imports from India. Bangladesh accounts for nearly 45 per cent of India’s cotton yarn exports. He said the move is expected to raise the cost of importing garments from Bangladesh, create fresh opportunities for domestic RMG manufacturers, and enable Indian yarn suppliers to redirect their focus to the local market. The policy is likely to strengthen India’s textile value chain and promote self-reliance in the apparel sector.