Tiruppur knitwear sector sees opportunity as India bans land port garment imports from Bangladesh

Knitwear manufacturers in Tiruppur are optimistic following the government's decision to ban import of ready-made garments from Bangladesh through land ports. The Directorate General of Foreign Trade, in a notification on May 17, allowed imports only via two designated seaports, a move welcomed by local industry leaders.

MP Muthurathanam, President, Tiruppur Exporters and Manufacturers Association (TEAMA), says the restriction is expected to revive domestic production, which remained stagnant at around Rs 30,000 crore annually due to the influx of low-cost ready-made garments from Bangladesh. He explained that the advantage Bangladeshi exporters had through tax rebates, lower labour costs, and duty-free access to Chinese raw materials allowed them to undercut Indian manufacturers by 20-25 per cent, significantly affecting local market share.

Robo D Ravichandran, Secretary, Tirupur Domestic Garments Manufacturer Association (TIDGMA), opines price advantage helped Bangladeshi garments dominate high-demand periods such as the Diwali. However, with the new restriction limiting imports to only two seaports, logistical delays and increased transportation costs would likely erode that cost edge.

KM Subramanian, President, Tiruppur Exporters Association (TEA) says the central government’s decision post Operation Sindoor is driven by national security concerns. He feels the move is a positive step that would benefit Tiruppur’s manufacturing sector by redirecting demand toward domestic producers. In 2024, India’s garment import from Bangladesh was $634 million. The new restrictions are expected to redirect demand back to Indian manufacturers.