India has moved to restrict garment and select product imports from Bangladesh through land ports, a decision that could unlock a ₹1,000–2,000 crore opportunity for the domestic textile industry. The notification, issued by the Directorate General of Foreign Trade (DGFT), still allows shipments via Kolkata and Nhava Sheva seaports.
The move comes amid concerns over rising duty-free imports from Bangladesh under India’s zero-duty policy, as well as the indirect inflow of Chinese fabric routed through Bangladesh to bypass higher import duties.
Industry leaders believe the restriction will strengthen local manufacturing, reduce dependence on imported garments, and create space for Indian producers—especially MSMEs—to expand. It may also help redirect domestic cotton yarn supplies to meet local demand, particularly after Bangladesh’s earlier curbs on Indian cotton yarn exports.
However, the transition could temporarily disrupt supply chains for both Indian and global apparel brands. Retailers may face sourcing challenges, potentially leading to a modest 2–3% increase in prices of popular clothing items such as T-shirts and denim wear during the winter season.
Bangladesh currently accounts for about 35% of India’s garment imports, though overall imports contribute only 1–2% of the country’s apparel consumption. Industry bodies say the policy is a strategic response to trade imbalances and a step toward boosting self-reliance, but emphasize the need for continued support in capacity building and ease of doing business to fully realize its benefits.
