New Delhi – India has introduced stringent import restrictions on Bangladeshi goods, escalating trade tensions between the two South Asian neighbors.
The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry issued a notification on May 17, 2025, limiting the entry of several Bangladeshi products, including ready-made garments, processed foods, plastics, and wooden furniture, to only Kolkata and Nhava Sheva seaports.
This move effectively bans these imports through land ports in northeastern states like Assam, Meghalaya, Tripura, Mizoram, and specific West Bengal checkpoints such as Changrabandha and Fulbari.
Reciprocal Measures and Trade Dynamics
The restrictions come as a retaliatory response to Bangladesh’s recent curbs on Indian exports, particularly yarn and rice, through its land ports. In April 2025, Bangladesh halted Indian yarn imports via land routes and restricted rice imports through Benapole, prompting India to reassess its trade policies.
Indian officials have cited fairness in trade, noting that Bangladesh has imposed non-tariff barriers, including aggressive inspections of Indian trucks and high transit charges, which have hindered Indian exports, especially from the northeastern states.
Bangladesh, a major global player in the textile industry with $38 billion in ready-made garment exports in 2023, relies heavily on India as its second-largest export market, with $700 million in garments shipped annually, 93% of which previously entered through land ports. The new restrictions are expected to disrupt Bangladesh’s export logistics significantly, increasing costs and transit times for its garment and consumer goods sectors.
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Exemptions and Economic Impact
Notably, the restrictions do not apply to Bangladeshi goods transiting through India to Nepal and Bhutan, nor do they affect imports of fish, LPG, edible oil, and crushed stone. However, items like fruits, flavored drinks, snacks, confectionery, cotton waste, and plastic goods face stringent barriers at northeastern land ports.
Industry experts in Bangladesh, such as Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, suggest that while the garment sector may adapt, the restrictions could severely impact processed food and other consumer goods exports.
Kamruzzaman Kamal, director at Pran-RFL Group, emphasized the potential setback for Bangladeshi businesses with significant investments in the Indian market, urging diplomatic dialogue to resolve the issue.
Broader Context and Diplomatic Tensions
The trade measures follow India’s withdrawal of transshipment facilities for Bangladeshi exports to third countries via Indian ports and airports on April 9, 2025, a decision linked to controversial remarks by Bangladesh’s interim chief adviser, Muhammad Yunus. Yunus referred to India’s northeastern states as “landlocked,” sparking diplomatic friction. The move also aligns with India’s push for self-reliance under the ‘Atmanirbhar Bharat’ initiative, aiming to bolster local manufacturing in the northeast by curbing competitive imports.
In FY24, India-Bangladesh trade was valued at $12.9 billion, with India exporting $11.06 billion and importing $1.8 billion from Bangladesh, making it India’s largest trading partner in the subcontinent. However, ongoing restrictions and reciprocal trade barriers threaten to strain this economic relationship further, with both sides urged to seek dialogue to maintain open trade routes.
Looking Ahead
As trade tensions escalate, the impact on bilateral relations and regional economic stability remains a concern. Analysts suggest that resolving these disputes through diplomatic channels will be crucial to sustaining the robust trade ties that have historically benefited both nations. The Interview Times will continue to monitor this developing story.
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