Ban on import of readymade garments from Bangladesh will empower Indian manufacturers: CITI
Business Business: The Confederation of Indian Textile Industry (CITI) on Sunday said the government’s move to ban all types of readymade garments (RMG) from Bangladesh through land ports will increase the cost of import of Bangladeshi garments and create new opportunities for domestic RMG manufacturers.In a recent notification issued by the office of the Director General of Foreign Trade (DGFT), India has suspended the import of all types of readymade garments from Bangladesh through land ports.
As per trade data, India imported RMG worth $634 million in 2024, growing at a CAGR of 19 per cent during the last 10 years. According to the Confederation, most of these imports were happening through land route only and hence, this ban is likely to have a significant impact on these RMG imports. CITI Chairman Rakesh Mehra said, “In April 2025, Bangladesh had banned the export of cotton yarn from India, which traditionally accounts for about 45 per cent of India’s total cotton yarn exports. This latest move by the Indian government is being seen as a strong and strategic response by Bangladesh to this unilateral trade ban.”
Mehra further explained that this decision is likely to increase the cost of imports of Bangladeshi apparels and create new opportunities for domestic RMG manufacturers, while also helping Indian cotton yarn exporters redirect their supplies to the domestic market to meet the potential demand gap.
“This can provide a much-needed boost to the Indian textile value chain by encouraging local sourcing and strengthening self-reliance in the apparel sector,” he added. Also Read – Adani Defence joins hands with Spartan to develop indigenous anti-submarine warfare solution for India
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In a significant trade policy shift, India on Saturday banned import of RMG, processed food and other commodities from Bangladesh into India through land ports, with immediate effect. However, such port restrictions will not apply to Bangladeshi goods transiting through India but destined for Nepal and Bhutan, the DGFT said in its notification.
