Garment makers expect import restrictions will improve matters.

• India’s Director General of Foreign Trade (DGFT) has announced that readymade garments can only be imported from Bangladesh through Nhava Sheva and Kolkata ports.

• This move is expected to reduce illegal entry of ready-made garments and increase competitiveness for undergarments in Tiruppur.

• The Confederation of Indian Textile Industry (CITI) reports that India imported readymade garments worth $634 million in 2024, a 19% CAGR growth in the last 10 years.

• Despite a trade surplus with Bangladesh, exports from India to Bangladesh grew 4.97% CAGR between 2015 and 2024.

• Garments worth ₹5,000 crore to ₹6,000 crore are imported annually by India from Bangladesh.

• The restriction is expected to reduce the backdoor entry of Chinese fabrics that were getting converted in Bangladesh and entering India without duty.