On May 17, 2025, India’s Directorate General of Foreign Trade (DGFT) announced a suspension of all ready-made garment (RMG) imports from Bangladesh via land ports. This decision mandates that such imports now enter exclusively through the seaports of Kolkata and Nhava Sheva. The move is perceived as a strategic response to Bangladesh’s April 2025 restriction on Indian cotton yarn exports, which previously constituted nearly 45% of India’s total cotton yarn
The restriction is anticipated to increase import costs for Bangladeshi garments due to longer transit times and higher logistics expenses. Conversely, it presents an opportunity for Indian textile manufacturers to capture a larger market share, potentially generating over ₹1,000 crore in additional business. Industry experts suggest this could also reduce the indirect entry of Chinese fabrics into India, promoting self-reliance in the domestic textile sector.
However, the sudden implementation has led to immediate logistical challenges, with reports of 36 Bangladeshi trucks carrying garments worth approximately ₹5 crore stranded at the Benapole-Petrapole border. Bangladeshi exporters express concerns over the increased costs and delays, fearing a loss of competitive edge in the Indian market. The situation underscores escalating trade tensions between the two nations, with both sides experiencing economic repercussions.
