Restrictions on Bangladesh RMG Imports to Boost Indian Apparel Industry: CITI

New Delhi – The Confederation of Indian Textile Industry (CITI) has welcomed the government’s decision to restrict the import of all types of readymade garments (RMG) from Bangladesh through land ports, stating it will raise import costs and open new opportunities for domestic manufacturers.

In a recent notification, the Directorate General of Foreign Trade (DGFT) announced a suspension of RMG imports from Bangladesh via land routes—a move that is expected to significantly impact trade volumes, as the majority of these imports currently take place through land ports.

According to trade data, India imported RMG worth $634 million from Bangladesh in 2024, with imports growing at a compound annual growth rate (CAGR) of 19% over the past decade.

Commenting on the development, CITI Chairman Rakesh Mehra said, “This move is seen as a firm and strategic response to Bangladesh’s recent restriction on the export of cotton yarn from India, which accounts for nearly 45% of India’s total cotton yarn exports.”

He added that the decision is likely to increase the cost of importing Bangladeshi garments, offering a competitive edge to Indian RMG manufacturers. It would also allow Indian cotton yarn exporters to redirect their supplies to the domestic market, addressing any supply gaps and fostering local value addition.

“This could provide a much-needed boost to India’s textile value chain by promoting domestic sourcing and strengthening self-reliance in the apparel sector,” Mehra noted.

The restriction, which came into effect immediately on Saturday, also applies to processed food and other goods imported from Bangladesh via land ports. However, the DGFT clarified that this restriction does not apply to Bangladeshi goods transiting through India en route to Nepal and Bhutan.

With inputs from IANS