India Imposes Textile Import Ban From Bangladesh Land Routes

India has restricted textile imports from Bangladesh through land routes, effective immediately, redirecting trade through Kolkata and Nhava Sheva seaports.

This measure aims to enhance India’s domestic textile industry, anticipated to capture a notable market share.

₹6,000 Crore Bangladeshi Textile Imports Shift to Seaports

The Directorate General of Foreign Trade has ordered a ban on garment imports from Bangladesh via land, now limiting entry to Kolkata and Nhava Sheva seaports. This policy shift is set to benefit domestic producers.

According to industry associations, the import ban affects textiles worth ₹6,000 crore annually, now potentially replaced by Indian manufacturing, estimated at ₹1,000-2,000 crore. As Sanjay K Jain, Chairman of the National Textile Committee, Indian Chamber of Commerce (ICC), noted, “We were importing garments worth ₹6,000 crore annually from Bangladesh. We can now expect imports worth ₹1,000-2,000 crore to be replaced with Indian manufacturing.” source

Local Producers to Gain, Apparel Prices May Rise

The policy is expected to increase market share for local producers, mitigating previous reliance on imports. Industry experts foresee a 2–3% rise in prices for certain winter apparel items.

Industry leaders highlight the logistical challenge for Bangladesh using sea routes, presenting opportunities for local growth and potential supply chain adjustments.

Policy Mirrors Historical Protectionist Trade Measures

This trade policy mirrors historical protectionist measures seen in the region, recalling Bangladesh’s former curb on Indian exports, affecting trade dynamics and regional competition.

Experts anticipate that these modifications could bolster the domestic sector’s capacity while prompting Bangladesh to re-strategize its export approach.