Garment import restrictions from Bangladesh to benefit Indian cos: Industry

New Delhi: The suspension of import of readymade garments from Bangladesh through land ports is likely to temporarily impact buyers as their supply chains will be disrupted leading to higher cost and lead times, textile industry representatives said.

India on Saturday imposed port restrictions on import of certain products such as readymade garments and processed food from Bangladesh, in response to similar measures imposed by Dhaka. Import of all kinds of readymade garments from Bangladesh shall not be allowed from any land port but would be permitted only through Nhava Sheva and Kolkata seaports.

Bangladesh exports over $700 million (around Rs 6,000 crore) worth of readymade garments annually to India and 93% of the shipments enter India through land ports.

Buyers will need to re-align their sourcing and for products with less diffrential in cost and quality, they would shift to Indian suppliers, exporters said.

“We can expect atleast Rs 1000 crore to replaced by Indian manufacturing,” said Sanjay K Jain, managing director, TT Ltd, a textile manufacturer and exporter.

Trade experts said that the move will lead to costs escalation by 15-25% besides delays in shipments as land ports face less traffic than sea ports.

“We have imposed this measure in retaliation to Bangladesh’s actions,” said an official, ruling out any further action on the issue.

“This will enable Indian cotton yarn exporters to redirect their supply to the domestic market to meet the potential demand gap created by reduced apparel imports. This could provide a much-needed boost to the Indian textile value chain by encouraging local sourcing and strengthening self-reliance in the apparel segment,” said Rakesh Mehra, chairman, the Confederation of Indian Textile Industry.

As per Ajay Sahai, director general, Federation of Indian Export Organisations, the restrictions will make Indian industry more competitive.

“This move would also reduce the backdoor entry of Chinese fabrics into India that were getting converted in Bangladesh and being sent to India duty free. Fabrics if imported directly from China face 20% import duty,” Jain said.

In April 2025, Bangladesh imposed restrictions on the export of cotton yarn from India, which traditionally accounts for nearly 45% of India’s total cotton yarn exports.