Restrictions on Bangladesh RMG imports to empower Indian manufacturers: CITI

In a recent notification issued by the office of the Director General of Foreign Trade (DGFT), India has suspended imports of all types of readymade garments from Bangladesh through land ports.

As per the trade data, India imported RMG worth $634 million in 2024, which has increased at a CAGR of 19 per cent during the last 10 years.

Majority of these imports were taking place through land route only and hence, this restriction is likely to have a considerable impact on these RMG imports, according to the confederation.

"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," said Rakesh Mehra, Chairman, CITI.

Mehra further highlighted that this decision is likely to increase the 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.

"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," he added.

In a significant trade policy shift, India on Saturday restricted the import of RMG, processed food and other items from Bangladesh to India via land ports, effective immediately. However, such said port restriction will not apply to Bangladesh goods transiting through India but destined for Nepal and Bhutan, the DGFT said in its notification.