Despite India’s decision on May 17 to impose curbs on Bangladesh apparel imports via land ports, Indian retailers say the impact will be minimal. Most plan to switch to domestic sourcing, which experts believe could strengthen local manufacturing and reduce reliance on foreign imports, especially from Bangladesh which currently enjoys duty-free access.
Bangladesh accounted for $618 million in India’s apparel imports in the first 11 months of FY25, making up 35–40% of India’s garment imports. The curbs now allow entry only through Nhava Sheva (Mumbai) and Kolkata seaports, raising costs and lead times. Indian manufacturers, including MSMEs, are expected to benefit from the shift in sourcing.
Industry leaders argue the move will also prevent indirect Chinese imports via Bangladesh and address concerns about the undercutting of local prices. Retailers like TT Ltd. and associations like the Clothing Manufacturers Association of India support the policy, urging complementary measures like capacity-building for Indian producers.