Mastering India’s F&O markets: Smarter trading and analysis with new web tools: India’s recent decision to restrict the import of ready-made garments and other consumer goods from Bangladesh through land routes is likely to make Bangladeshi exports to India more expensive. The government has announced that these imports will now be permitted only through two sea ports—Kolkata and Nhava Sheva—while imports through land customs stations in northeastern states like Meghalaya, Assam, Tripura, and Mizoram, along with Phulbari and Changrabandha in West Bengal, are no longer allowed. This change is expected to have a significant impact, especially since a majority of these imports traditionally used land routes due to cost-effectiveness and proximity.
Mastering India’s F&O markets: Smarter trading and analysis with new web tools
Mastering India’s F&O markets:: The textile industry in India has responded to this development with a mix of strategic support and cautious optimism. According to trade data, India imported ready-made garments worth USD 634 million from Bangladesh in 2024, and this trade has grown steadily at a compound annual growth rate of 19 percent over the past decade. With the majority of these imports entering through land routes, the sudden shift to sea ports will increase logistics costs, making the final products more expensive for Indian buyers and reducing the price advantage of Bangladeshi garments.
Rakesh Mehra, Chairman of the Confederation of Indian Textile Industry (CITI), pointed out that the move is a strong and calculated response to Bangladesh’s earlier decision in April 2025 to restrict the export of cotton yarn from India. Cotton yarn is a crucial component of India’s textile exports, accounting for about 45 percent of total cotton yarn exports. By tightening its border policy, India is not only responding to Bangladesh’s trade restrictions but also aiming to protect its own domestic textile ecosystem. Mehra believes this will push Indian manufacturers to capture the domestic market share and may even prompt Indian exporters to redirect cotton yarn to serve local demand instead of depending on exports.
Santosh Katariya, President of the Clothing Manufacturers Association of India (CMAI), echoed similar sentiments. He described the government’s decision as a timely and necessary step to curb the unchecked flow of low-cost imported garments into the Indian retail market. According to him, this influx has long hurt the interests of local manufacturers, particularly micro, small, and medium enterprises (MSMEs), who struggle to compete with the pricing of Bangladeshi imports. Katariya emphasized that while this policy shift is positive, it must be supported by broader efforts to enhance manufacturing capabilities in India. He urged for consistent government support through simplified regulations and financial incentives that can help Indian textile businesses scale up and meet the potential demand gap.
The broader implication of this move goes beyond just the textile sector. The restriction also applies to other Bangladeshi goods such as plastics, wooden furniture, processed foods, carbonated and fruit-flavoured drinks, as well as cotton waste, indicating a recalibration of India’s trade strategy with its eastern neighbor. It follows another significant policy change made five weeks earlier, when India revoked a five-year arrangement that allowed Bangladeshi goods to be transshipped to third countries via Indian ports and airports.
From a geopolitical perspective, this change signals India’s growing focus on trade self-reliance and domestic industry protection. It is seen as a defensive yet strategic measure to ensure Indian manufacturers are not undercut by cheaper foreign goods. In the short term, Indian consumers may face slightly higher prices for garments that used to be imported cheaply via land, but in the long run, the move could result in a more resilient and competitive domestic apparel industry.
This development marks a shift in India-Bangladesh trade relations and could influence future bilateral negotiations. While the Indian textile industry stands to benefit, much depends on how Bangladesh responds and whether the two countries can find a balanced approach that supports fair trade without disrupting long-term economic cooperation.
