Industry experts estimate that India’s prohibition on Bangladeshi imports via land ports might boost the country’s textile sector by around Rs. 1,000 crore (US $ 117 million). However, there may be supply problems for some branded clothing over the winter, which could result in a 2-3 per cent increase in the cost of products like T-shirts and jeans. This follows restrictions placed by Bangladesh on land imports from India, further increasing trade tensions between the two countries.
In a notice released on Saturday, the Director General of Foreign Trade (DGFT) prohibited the land importation of clothing and a number of other goods from Bangladesh, but permitted their shipment through the ports of Kolkata and Nhava Sheva (located in Navi Mumbai).
Concerned about a double-digit increase in textile imports from Bangladesh as a result of zero import duties, the local sector had been calling for import curbs. The action is also anticipated to reduce the backdoor importation of Chinese textiles, which would otherwise be subject to a 20 per cent import tax.
India will not suffer a significant loss, while Bangladesh will find it challenging to import via sea in containers as opposed to the land approach, which only takes a few days, stated Bimal Bengani, the Federation of Indian Export Organisations’ (FIEO) head for the eastern area.
Bangladesh was supplying India with clothing valued at Rs. 6,000 crore (US $ 702 million) a year, said Sanjay K. Jain, head of the National Textile Committee of the Indian Chamber of Commerce (ICC), adding that Indian manufacturing is now anticipated to replace imports valued at Rs. 1,000–2,000 crore (US $ 117 million-US $ 234 million).
Because of Bangladesh’s zero-duty policy, Indian businesses have been importing woven and knitted clothing from the country.
According to Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation, which represents the whole textile value chain, the measure (ban on imports via land routes) will assist boost domestic production and encourage local producers.
Industry estimates indicate that Bangladesh imports over 35 per cent of all garments in India, while India imports between 1 per cent and 2 per cent of its total apparel consumption and that between 20 and 60 per cent of clothing from Bangladesh is sourced by all of the major Indian brands as well as international brands that are present in India.
In April 2025, Bangladesh restricted the shipment of cotton yarn from India, which historically makes up over 45 per cent of India’s total exports of cotton yarn, according to Rakesh Mehra, Chairman of the Confederation of Indian Textile Industry (CITI). The Indian government’s most recent action is viewed as a forceful and calculated reaction to Bangladesh’s unilateral trade ban.
Mehra went on to say that this decision is likely to raise the cost of importing clothing from Bangladesh and open up new markets for domestic RMG producers. It will also allow Indian cotton yarn exporters to reroute their supply to the domestic market in order to fill any potential demand gaps.
