India’s Import Ban on Bangladeshi Textiles: What It Means and Which Stocks May Benefit

India has recently imposed new restrictions on the import of certain goods from Bangladesh, including ready-made garments. Effective May 17, 2025, these products are no longer allowed entry through land ports and can only be imported via seaports like Kolkata and Mumbai. This move is seen as a response to Bangladesh’s earlier ban on Indian yarn imports through land routes, aimed at protecting its own textile industry.

Due to these restrictions, Indian textile companies are expected to benefit as competition from Bangladeshi garments is reduced. Let’s look at five Indian textile stocks that are likely to gain, and one that might face challenges.

Stocks Likely to Benefit

1. KPR Mill - KPR Mill is a major textile company involved in yarn, fabric, and garment manufacturing. With reduced competition from Bangladeshi garments, KPR could see more demand for its products both domestically and through exports.

   

   KPR Mills

   
   

2. Page Industries - Known for its brand "Jockey," Page Industries is a key player in the premium innerwear and loungewear segment. As imports become more difficult, local brands like Page are likely to gain market share.

   

   Page Industries

   
   

3. Welspun Living - Specializing in home textiles like towels and bed linens, Welspun may benefit indirectly as Indian textile suppliers become more attractive to global buyers looking to diversify away from Bangladesh.

   

   Welspun Living

   
   

4. Vardhman Textiles - A leader in yarn and fabric production, Vardhman could see a boost in sales due to increased demand from domestic garment manufacturers who now rely more on Indian sources instead of Bangladeshi imports.

   

   Vardhman Textiles

   
   

5. Trident - Trident, involved in yarns, towels, and bedsheets, is well-positioned to take advantage of the shift. The company may benefit from better pricing power and increased order volumes.

   

   Trident Ltd

   
   

Stock That Might Be Adversely Affected

• Aditya Birla Fashion and Retail Ltd (ABFRL) - ABFRL imports a part of its garment line from Bangladesh, especially for its affordable and fast fashion segments. The import restrictions could lead to supply chain issues, increased costs, or delays, potentially hurting its margins and inventory management.

Conclusion

India’s move to restrict imports from Bangladesh could reshape the textile market in the short term. While Indian textile manufacturers are poised to benefit from reduced foreign competition, import-dependent brands may face operational challenges. Investors may want to watch how these companies adapt in the coming months.

Which ones are your favorites or that you have in your portfolio? Comment below and let us know.

Also READ : Indian Textile companies set to gain from INDIA-UK trade deal

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Disclaimer: The views expressed in this article are intended for educational purposes only and should not be considered as buy/sell recommendations. Investing in stocks involves financial risk. Please consult a qualified financial advisor before making any investment decisions.