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Key Points

India has imposed significant trade restrictions on Bangladesh, limiting imports through land ports and redirecting goods through specific seaports. The move affects approximately $770 million worth of exports, with readymade garments being the most impacted sector at $618 million. This action appears to be a retaliatory step following Bangladesh's earlier ban on yarn imports from India. The trade tensions could potentially strain the diplomatic and economic relationship between the two neighboring countries.

Key Points: India Trade Curbs Hit Bangladesh $770M Export Corridor

  • India blocks Bangladesh imports via land ports
  • Garment exports now limited to two seaports
  • $770M trade impact estimated
  • Retaliatory move after Bangladesh yarn import ban
2 min read

Bangladesh faces $770 million hit due to India's curbs on trade

India restricts Bangladesh imports through land ports, impacting $770M in goods, including readymade garments and processed items.

"Readymade garments, valued at $618 million, now face strict routing through only two Indian seaports. - Ajay Srivastava, GTRI"

New Delhi, May 18

India's decision to restrict imports from Bangladesh is expected to hit goods worth $770 million (Rs 6,600 crore) that flow in through the cross-border trade points with the neighbouring country.

"Readymade garments, valued at $618 million (Rs 5,290 crore), now face strict routing through only two Indian seaports. This severely limits Bangladesh’s most valuable export channel to India," said Ajay Srivastava, founder of think-tank Global Trade Research Initiative (GTRI).

The other goods that have been barred from entry into India through the land customs stations on the border include fruit-flavoured carbonated drinks, processed foods, cotton and cotton yarn waste, plastic and PVC finished goods, and wooden furniture. The total value of these items is pegged at around $153 million (Rs 1,310 crore).

India’s Directorate General of Foreign Trade (DGFT) issued a notification imposing land port restrictions on the import of goods such as readymade garments, processed food items etc., from Bangladesh to India with immediate effect on Saturday.

“However, such said port restriction will not apply to Bangladesh goods transiting through India but destined for Nepal and Bhutan,” the DGFT said in its notification.

According to the directive, “Import of all kinds of Ready-Made Garments from Bangladesh shall not be allowed from any land port, however, it is allowed only through Nhava Sheva and Kolkata seaports”.

These items “shall not be allowed through any Land Customs Stations (LCSs)/ Integrated Check Posts (ICPs) in Assam, Meghalaya, Tripura and Mizoram; and LCS Changrabandha and Fulbari, in West Bengal".

"The port restrictions do not apply to the import of Fish, LPG, edible oil, and crushed stone from Bangladesh,” the notification further read.

The Indian move came after the Bangladesh government in April banned the import of yarns from India to the country via land ports through a notification from the National Board of Revenue (NBR).

Earlier, India terminated the trans-shipment facility for Bangladesh, which allowed the latter to export its products to other countries through Indian seaports and airports.

India is Bangladesh's second-largest trading partner after China. In the fiscal 2022-23, Bangladesh-India trade amounted to around $16 billion.

Bangladesh imported goods worth about $14 billion, while its exports to India stood at $2 billion, as per industry data.

- IANS

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Reader Comments

R
Rajesh K.
This seems like a tit-for-tat response after Bangladesh banned yarn imports via land ports. While I understand protecting domestic industries, we must remember Bangladesh is our neighbor and strategic partner. Hope both sides can resolve this diplomatically. 🇮🇳🤝🇧🇩
P
Priya M.
Our garment industry has been suffering due to cheap imports from Bangladesh. This move will help local manufacturers in Surat and Tiruppur. But government should also focus on improving our competitiveness rather than just imposing restrictions.
A
Amit S.
The trade imbalance is huge - $14 billion imports vs $2 billion exports! We need to protect our economy. Bangladesh should understand this. Maybe they can focus on reducing trade deficit by importing more Indian goods instead of just complaining.
S
Sunita R.
As someone from Assam, I welcome this move. The unchecked flow of goods through land borders was affecting local businesses. But I hope the government ensures essential items like medicines aren't affected. Border trade needs proper regulation, not complete stoppage.
V
Vikram J.
This is short-sighted policy making. Instead of knee-jerk reactions, we need comprehensive trade agreements that benefit both nations. Bangladesh is an important partner in countering China's influence in the region. Economic cooperation should be strengthened, not weakened.
N
Neha P.
Interesting that fish and edible oil are exempted. Shows the government is being selective rather than completely shutting doors. Maybe trying to balance economic and diplomatic concerns? 🤔 Hope our local markets don't see price hikes due to this.
K
Karan D.

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