Will Restrictions on Bangladesh RMG Imports Boost Indian Manufacturers?
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Synopsis
The Indian government's recent restrictions on readymade garment imports from Bangladesh are expected to elevate costs while simultaneously fostering local manufacturing opportunities. This move, highlighted by CITI, signals a strategic shift in the textile industry landscape and aims to strengthen India's self-reliance in apparel production.
Key Takeaways
- Restrictions on RMG imports are now in place from Bangladesh.
- Domestic RMG manufacturers may benefit from increased costs for imports.
- India's textile industry is set for a potential boost.
- Strategic response to Bangladesh's cotton yarn export ban.
- Local sourcing may enhance self-reliance in the apparel sector.
New Delhi, May 18 (NationPress) The government's initiative to impose restrictions on all forms of readymade garments (RMG) from Bangladesh via land ports is set to raise the import costs of these garments and generate fresh prospects for local RMG manufacturers, as stated by the Confederation of Indian Textile Industry (CITI) on Sunday.
According to a recent announcement from the office of the Director General of Foreign Trade (DGFT), India has halted the import of all types of readymade garments from Bangladesh through land routes.
Trade statistics reveal that India imported RMG amounting to $634 million in 2024, marking a notable growth rate of 19 percent CAGR over the past decade.
The majority of these imports were conducted via land routes, making the new restriction likely to significantly affect RMG imports, according to the confederation.
In April 2025, Bangladesh implemented a ban on the export of cotton yarn to India, which has historically constituted nearly 45 percent of India's total cotton yarn exports. The latest action by the Indian government is viewed as a robust and tactical response to this unilateral trade barrier imposed by Bangladesh,” remarked Rakesh Mehra, Chairman of CITI.
Mehra emphasized that this decision will likely elevate the costs of Bangladesh garment imports and open up new avenues for domestic RMG producers, while also allowing Indian cotton yarn exporters to shift their supply to the local market in response to the anticipated demand gap.
“This could serve as a vital stimulus for the Indian textile value chain by promoting local sourcing and enhancing self-sufficiency in the apparel sector,” he added.
In a substantial shift in trade policy, India has recently limited the import of RMG, processed foods, and other goods from Bangladesh through land ports, effective immediately. However, this restriction will not apply to Bangladeshi goods passing through India bound for Nepal and Bhutan, as announced by the DGFT in its notification.
Point of View
It is essential to acknowledge the strategic measures taken by India in response to trade dynamics with Bangladesh. While this decision may have immediate economic implications, it emphasizes the nation's commitment to bolstering local industries and fostering self-reliance in key sectors.
NationPress
08/06/2025
Frequently Asked Questions
What are the recent restrictions on RMG imports?
The Indian government has imposed restrictions on all types of readymade garments from Bangladesh through land ports, effective immediately.
How will this affect Indian manufacturers?
This move is expected to increase import costs for Bangladesh garments while creating new opportunities for domestic RMG manufacturers.
What was the volume of RMG imports from Bangladesh?
In 2024, India imported RMG worth $634 million, showing a growth rate of 19 percent CAGR over the last decade.
How does this relate to cotton yarn exports?
Bangladesh's restriction on cotton yarn exports to India, which accounted for 45 percent of India's total yarn exports, prompted this strategic response.
Will the restrictions apply to goods destined for other countries?
No, the restrictions will not apply to Bangladeshi goods transiting through India bound for Nepal and Bhutan.
