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India’s Import of Bangladeshi Garments Drops 27% After New Restrictions, Boosts Domestic Textile Market

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New Delhi— India’s import of ready-made garments (RMG) from Bangladesh plunged by 27 percent to USD 257 million during April–September 2025, compared to the same period last year, following government-imposed restrictions aimed at supporting the domestic textile industry.

According to officials in the Ministry of Textiles, the policy move — combined with GST reforms — has helped cushion the industry against the impact of US tariffs and revived domestic manufacturing. India’s global textile, apparel, and made-up exports grew marginally by 0.1 percent during the same six-month period.

The government, on May 17, restricted RMG imports from Bangladesh, allowing entry only through Kolkata and Nhava Sheva ports. Previously, nearly 40 percent of India’s RMG imports came from Bangladesh, with 93 percent routed through land ports. Following the new rules, imports dropped from USD 327 million to USD 257 million between April and September.

“The import decline shows that the restrictions and tax reforms have strengthened India’s domestic textile ecosystem,” ministry sources.

Officials added that the government is pursuing multiple initiatives to offset trade disruptions caused by US tariffs. These include diversifying export markets, extending export obligations for authorised holders with quality control exemptions from six to eighteen months, and continuing the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme until March 31, 2026.

India’s textile exports expanded in 111 countries during April–September 2025, with notable growth in the UAE (14.5%), Japan (19%), Spain (9%), and France (9.2%). Exports to emerging markets like Egypt (27%), Saudi Arabia (12.5%), and Hong Kong (69%) also surged. These markets collectively contributed USD 8.49 billion, a 10 percent increase from USD 7.72 billion last year.

Officials credited the export growth to the government’s proactive outreach, including delegations abroad and diplomatic promotion through Indian embassies. Key sectors driving this expansion were ready-made garments, which rose by 3.42 percent, and jute, which grew by 5.56 percent — demonstrating resilience and adaptability amid shifting global trade patterns.

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