• Import Restriction: India has banned garment and goods imports from Bangladesh via land ports (still allowed via seaports) to curb duty-free inflows and backdoor Chinese fabric entry.
• Boost to Domestic Industry: The move could create a Rs 1,000-2,000 crore opportunity for Indian textile players by increasing domestic production and reducing import dependency.
• Impact on Market: Short-term disruptions expected for apparel brands, with possible 2–3 percent price hike in T-shirts and denims during winter; long-term benefits anticipated for local MSMEs and cotton yarn producers.

India's latest move to impose restrictions on imports from Bangladesh via land routes may create a Rs 1,000–2,000 crore opportunity for the country's domestic textile industry, say industry players. While the initiative might have the short-term effect of creating supply chain hiccups for big Indian and international apparel brands, it could also lead to a 2–3 percent increase in the prices of trendy products like T-shirts and denims during the winter months.

The Directorate General of Foreign Trade (DGFT), through a notification dated Saturday, prohibited garment and other goods import from Bangladesh through land ports. Imports are still allowed through the Kolkata and Nhava Sheva seaports. The move follows growing alarm at a glut of duty-free textile imports from

Bangladesh made possible by India's zero-duty regime.

Industry players explain that the action is set to increase domestic production, cut the country's dependence on foreign-produced clothes, and stop the back-door importation of Chinese fabric through Bangladesh which is subject to a 20 percent import tariff if directly imported from China.

Rakesh Mehra, Confederation of Indian Textile Industry (CITI) Chairman, said, "In April 2025, Bangladesh put a ban on the export of cotton yarn from India, which has historically contributed to almost 45 per cent of India's entire cotton yarn exports. The recent action of the Government of India comes across as a robust and strategic reaction to this unilateral trade barrier of Bangladesh".

He also emphasized that this move will likely push up Bangladesh garment imports cost and generate new opportunities for local RMG producers, while also allowing Indian exporters of cotton yarn to re-channel their supply to the domestic market to satisfy the likely domestic demand shortfall generated.
Santosh Katariya, CMAI President, stated that the decision meets the long-standing grievance of the industry related to the unregulated entry of cheap garments into the Indian market, harming domestic producers, especially MSMEs.

"The move is a much-needed step in averting dumping of foreign-made clothes and enhancing India's self-sufficiency in apparel manufacturing. Concurrently, we feel that the policy has to be accompanied by ongoing support for capacity building and ease of doing business for Indian manufacturers", he said.
Industry estimates place imports at 1–2 percent of India's clothing needs, with Bangladesh alone providing 35 percent of garment imports.

With this action (ban on imports through land routes), the curtailment in imports will assist in boosting local production and assisting local manufacturers", Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation said in an interview with ET.

The policy shift would also impact supply chains of numerous apparel brands, including MSME units and big-format retailers.