India’s sudden decision to ban the import of key Bangladeshi goods via land ports has sparked concerns of escalating trade tensions between the two neighboring countries, with Bangladeshi officials and business leaders warning that the move will significantly harm cross-border commerce.
The ban, which took immediate effect on Saturday, was announced in a notification issued by India’s Directorate General of Foreign Trade (DGFT). It restricts the import of at least seven categories of goods from Bangladesh—including readymade garments, processed foods, fruit-flavored beverages, baked goods, plastic products, and wooden furniture—through land routes. These products must now enter India only via sea, through ports in Kolkata and Mumbai.
According to Commerce Advisor Sheikh Bashir Uddin, the measure will not only hurt Bangladeshi exporters but also negatively impact Indian traders, particularly in the northeastern states that heavily rely on imports from Bangladesh.
“Indian traders will be affected by this measure. We are two geographically connected countries. This is part of trade management. Both sides can reach a suitable resolution through dialogue,” said Bashir Uddin while speaking to reporters at the Secretariat on Sunday.
The restrictions apply to all Indian land customs stations and Integrated Check Posts (ICPs) located in Assam, Meghalaya, Tripura, Mizoram, and West Bengal’s Changrabandha and Fulbari regions. Exemptions remain for certain items like fish, LPG, cooking oil, and goods transiting through India to Nepal and Bhutan.
The move follows a similar step by Bangladesh, which about a month ago halted the import of Indian yarn via land ports—a restriction that is believed to have triggered the latest Indian response. India had also previously canceled a transshipment facility on April 9, further straining bilateral trade relations.
Former Bangladesh Garment Manufacturers and Exporters Association (BGMEA) director Mohiuddin Rubel characterized India’s decision as “retaliatory” and warned that it could have a chilling effect on trade.
“Now, sending goods by sea will take more time and increase costs, especially for smaller exporters. There is a real risk that overall exports could decline,” said Rubel.
Bangladesh exports nearly $700 million worth of garments to India annually, and about 93% of those shipments go through land ports. The Indian ban now forces those exporters to reroute their products via costly and time-consuming sea channels.
Data from the National Board of Revenue (NBR) shows that in the fiscal year 2022–23, Bangladesh exported goods worth Tk 176.59 billion to India. That figure remained stable in FY 2023–24 at Tk 174.25 billion, with Tk 115.77 billion recorded in the first half of the current fiscal year.
Shams Mahmud, former president of the Dhaka Chamber of Commerce and Industry (DCCI), said the new restrictions are a serious blow to trade with India’s northeastern states, which have increasingly relied on Bangladeshi products.
“Transporting goods by sea to those regions is not viable for many exporters, especially for small shipments. This will increase costs significantly, and we don’t know if Indian consumers will accept the higher prices,” he said.
Economists have also questioned the rationale behind the move. Zahid Hussain, former lead economist at the World Bank’s Dhaka office, criticized the lack of transparency and consultation.
“There was no prior discussion or explanation. This kind of abrupt restriction could raise concerns about World Trade Organization (WTO) compliance. Unless India cites security reasons, the justification seems weak,” said Hussain.
While both countries continue to allow certain categories of trade and emphasize the importance of bilateral cooperation, industry leaders are urging swift resolution to prevent long-term economic damage.
“We don’t believe the restriction will remain in place for long,” said Shams Mahmud. “But both sides must act quickly to find a constructive and mutually beneficial solution.”
With trade ties between India and Bangladesh already under strain, this latest development underscores the fragile nature of regional commerce—and the urgent need for diplomatic engagement to prevent further economic fallout.
