India has recently imposed significant restrictions on imports from Bangladesh, affecting approximately 42% of bilateral trade, valued at around USD 770 million. This move, announced on May 17, 2025, by the Directorate General of Foreign Trade (DGFT), is seen as a response to similar trade barriers previously enacted by Bangladesh.
Key Restrictions Imposed
- Readymade Garments: Imports of all kinds of ready-made garments from Bangladesh are now restricted to entry only through the Nhava Sheva and Kolkata seaports. Land port entries are prohibited.
- Consumer Goods: Items such as fruit-flavored and carbonated drinks, processed food products, cotton and cotton yarn waste, plastic and PVC finished goods (excluding certain industrial inputs), and wooden furniture are barred from entering through land customs stations in Assam, Meghalaya, Tripura, Mizoram, and specific points in West Bengal.
- Exemptions: The restrictions do not apply to imports of fish, LPG, edible oil, and crushed stone from Bangladesh.
Reasons Behind the Restrictions
The Indian government’s decision is perceived as a retaliatory measure against Bangladesh’s earlier trade limitations on Indian goods. Additionally, concerns have been raised over Bangladesh’s growing economic ties with China, especially following statements by Bangladesh’s interim Chief Adviser Muhammad Yunus emphasizing the country’s strategic importance to China’s economy.
Impact on Regional Trade
These restrictions are expected to significantly affect India’s northeastern states, which rely heavily on land-based trade routes with Bangladesh. The move aims to protect local industries in these regions from competitive Bangladeshi imports and to encourage domestic manufacturing. The Times of India
Conclusion
The imposition of these trade restrictions marks a notable shift in India-Bangladesh relations, reflecting underlying diplomatic tensions and strategic recalibrations. As both nations navigate these challenges, the future of their bilateral trade and cooperation remains uncertain.
