New Delhi, May 18th 2025: In a recent notification issued by the Office of Director General of Foreign Trade (DGFT), India has suspended imports of all types of Readymade Garments (RMG) from Bangladesh through land ports.

As per the trade data, India imported RMG worth US$ 634 million in 2024 which has increased at a CAGR of 19% during the last 10 years. Majority of these imports were taking place through land route only and hence this restriction is likely to have a considerable impact on these RMG imports.

Commenting on the development, Shri Rakesh Mehra, Chairman of the Confederation of Indian Textile Industry (CITI), stated, “In April 2025, Bangladesh imposed a restriction on the export of cotton yarn from India, which traditionally accounts for nearly 45% of India’s total cotton yarn exports. The latest move by the Government of India is seen as a strong and strategic response to this unilateral trade restriction by Bangladesh.”

Shri Mehra further highlighted that this decision is likely to increase cost of imports of Bangladesh garments and create new opportunities for domestic RMG manufacturers, while also enabling Indian cotton yarn exporters to redirect their supply to the domestic market to meet the potential demand gap created. This could provide a much-needed boost to the Indian textile value chain by encouraging local sourcing and strengthening self-reliance in the apparel segment, he added.