Bangladesh port curbs might shift Rs 1,000 crore textile commerce to Indian producers & curb Chinese language cloth backdoor, ETCFO

India’s latest choice to limit imports from Bangladesh by land routes might open up a Rs 1,000–2,000 crore alternative for the home textile sector, based on trade insiders. Nevertheless, the transfer might briefly disrupt provide chains of main Indian and international attire manufacturers, probably inflicting a 2–3% rise in costs of widespread objects like T-shirts and jeans throughout the winter season.

The Directorate Common of Overseas Commerce (DGFT), in a notification issued on Saturday, banned garment and different product imports from Bangladesh by way of land ports. Nevertheless, shipments are nonetheless permitted by the Kolkata and Nhava Sheva seaports. The choice comes amid rising issues over a surge in duty-free textile imports from Bangladesh, enabled by India’s zero-duty coverage.Business representatives say the transfer is predicted to spice up native manufacturing, scale back reliance on foreign-made clothes, and curb the oblique entry of Chinese language cloth routed by Bangladesh — which at present attracts a 20% import obligation if shipped instantly from China.

Rakesh Mehra, Chairman of the Confederation of Indian Textile Business (CITI), said, “In April 2025, Bangladesh imposed a restriction on the export of cotton yarn from India, which historically accounts for practically 45 per cent of India’s complete cotton yarn exports. The newest transfer by the Authorities of India is seen as a robust and strategic response to this unilateral commerce restriction by Bangladesh.”

He additional highlighted that this choice is more likely to improve price of imports of Bangladesh clothes and create new alternatives for home RMG producers, whereas additionally enabling Indian cotton yarn exporters to redirect their provide to the home market to fulfill the potential demand hole created.

Santosh Katariya, President, Clothes Producers Affiliation of India (CMAI), mentioned the transfer addresses the trade’s long-standing concern concerning the unchecked influx of low-cost attire into the Indian retail market, which was adversely impacting home producers, notably MSMEs.

“The choice is a well timed step in the direction of stopping the dumping of foreign-made clothes and strengthening India’s self-reliance in attire manufacturing. On the similar time, we imagine this coverage should be complemented with continued help for capability constructing and ease of doing enterprise for Indian producers,” he added.

In keeping with trade estimates, imports meet 1–2% of India’s attire consumption, with Bangladesh accounting for 35% of complete garment imports.

“With this transfer (ban on imports by way of land routes), the discount in imports will assist strengthen home manufacturing and help native producers,” Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation informed ET.

The coverage change might additionally hit provide chains of many attire manufacturers, together with MSME items and large-format retailers.

(With inputs from company)