Bangladesh port curbs may shift Rs 1,000 crore textile trade to

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.