India has imposed new restrictions on the import of at least seven categories of products from Bangladesh through land ports, including readymade garments and processed food items. These measures are feared to create significant complications for Bangladeshi exporters.
The Directorate General of Foreign Trade (DGFT), under India’s Ministry of Commerce and Industry, issued the directive on Saturday.
According to the order, no apparel products from Bangladesh will be allowed entry into India via any land port.
From now on, garments manufactured in Bangladesh can only enter India through Kolkata and Mumbai’s Jawaharlal Nehru seaports.
The new restrictions also apply to:
Fruits, fruit-flavored drinks, and carbonated beverages
Processed food products such as bakery items, chips, snacks, and confectioneries
Cotton and yarn waste
PVC and other plastic products
Wooden furnitureThese items will not be allowed entry into India through any Land Customs Stations (LCS) or Integrated Check Posts (ICP) in the Indian states of Assam, Meghalaya, Tripura, and Mizoram, or through West Bengal’s Changrabandha and Fulbari LCS.
This move by India comes roughly a month after Bangladesh imposed a ban on the import of Indian yarn through land ports — a response that India now counters with its own immediate restrictions, according to its Ministry of Commerce.
However, India will continue importing fish, LPG, edible oil, and stones from Bangladesh. Additionally, Bangladeshi exports to third countries via India will also remain unaffected.
Analysts point out that while the United States imposed steep tariffs on China, India has taken even tougher action against Bangladesh.
Former BGMEA Director Mohiuddin Rubel told bdnews24.com, “Shipping products to specific destinations in India by sea will now take more time and cost more. This means there’s a risk of reduced exports.”
Small exporters are likely to suffer the most since sending small quantities of goods by sea is not cost-effective.
According to National Board of Revenue (NBR) data, Bangladesh exported goods worth Tk 17,659 crore to India in the 2022-23 fiscal year. That figure remained nearly unchanged in the following year.
In the 2023–24 fiscal year, Bangladesh exported Tk 17,425 crore worth of goods to India. In the first six months of the current fiscal year, exports reached Tk 11,577 crore.
Among the countries where Bangladesh’s garment exports have grown in recent years, India is one of the top destinations — with exports worth around $700 million annually.
About 93% of these garment exports are sent via land routes. Therefore, the new Indian restrictions are feared to deliver a significant blow to this sector.
India’s English daily Business Standard wrote that this step has further intensified trade tensions between the two countries.
Roughly a month ago, Bangladesh’s National Board of Revenue (NBR) halted the import of yarn from India via land ports like Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari.
Earlier, on April 9, India also revoked the transshipment facility for Bangladeshi exports to third countries. Now, India has imposed even stricter restrictions on Bangladeshi products.
According to The Times of India, trade between India and Bangladesh takes place through 11 land ports in northeastern India, including three in Assam, two in Meghalaya, and six in Tripura.
In recent years, exports from Bangladesh to India’s Seven Sister states have been increasing. These new restrictions will make business with these regions more difficult.
Shams Mahmud, former president of the Dhaka Chamber of Commerce and Industry (DCCI), told bdnews24.com, “If we now have to export through Delhi or another seaport, transport costs will increase because the land route from Bangladesh is shorter. Even one truckload of goods can be sent easily via land — that’s not feasible or cost-effective via sea.”
He added, “Offloading at sea and then transporting by truck to the Seven Sisters will be very expensive. We’ll only know how much product prices will increase once the goods are actually shipped.”
On the impact to the garment sector, Shams Mahmud observed that mid-sized Bangladeshi factories that export to India will now face obstacles.
Mohiuddin Rubel, Additional Managing Director of Denim Expert Limited, called India’s move “reckless.”
He told bdnews24.com, “Such a decision will naturally deteriorate the trade relationship between the two countries further. At a time when global trade is already under pressure, these tit-for-tat decisions will only increase losses for both sides.”
As exports of Bangladeshi garments to India continue to grow, the new decision is “certainly a cause for concern,” Rubel commented.
He added, “This will affect overall trade relations — that concern always remains.”
Shams Mahmud, Managing Director of Shasha Denims, said, “Land trade was beneficial for both countries. Indian consumers were able to get Bangladeshi products at lower costs. Some products can’t even be sent by India to its eastern states.”
“Now, investment plans around this market may come under threat. I don’t think this will last long. Both countries will have to rethink and find a solution.”
Former World Bank Lead Economist in Dhaka, Zahid Hussain, said it’s unclear why India made such a sudden decision without any discussion.
He commented, “We hadn’t heard anything about this beforehand. There was no discussion. India hasn’t even given a reason. Usually, such actions require justification — otherwise, WTO compliance issues may arise.”
Zahid Hussain added, “I assume they will cite security grounds. But is that really a valid reason? Why restrict land trade now? This trade has been going on for years. What has happened suddenly that makes Bangladesh’s exports to India a security concern? That would be quite a laughable excuse.”