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Business World News Updated May 18, 2025

India curbs Bangladeshi exports via land ports

India has tightened trade rules for Bangladesh, limiting garment and food imports to seaports instead of land routes. The move comes after Dhaka imposed transit fees and curbs on Indian goods, straining relations. Officials say the restrictions aim to balance trade while sparing essentials like fish and LPG. The decision may raise costs for Bangladesh's garment sector, which heavily relies on cross-border trade.

New Delhi, May 18

The Ministry of Commerce and Industry has imposed immediate port restrictions on the import of several categories of goods from Bangladesh, following a directive issued by the Directorate General of Foreign Trade (DGFT).

The move limits the entry of products such as ready-made garments and processed foods to specific seaports, an official press release by the Ministry stated.

The move is widely viewed as a response to Bangladesh's recent curbs on Indian yarn, rice, and other goods, along with its decision to impose a transit fee on Indian cargo, marking a shift from previously cooperative trade relations.

Under the new directive, all kinds of ready-made garments from Bangladesh can now only be imported through Nhava Sheva and Kolkata seaports, with entry through land ports no longer permitted.

Additionally, the import of items such as fruit-flavoured and carbonated drinks, processed food, cotton waste, PVC and plastic finished goods (except approved industrial inputs), and wooden furniture has been restricted at Land Customs Stations (LCSs) and Integrated Check Posts (ICPs) in Assam, Meghalaya, Tripura, Mizoram, and West Bengal's Changrabandha and Fulbari.

The directive makes clear that imports of essential items like fish, LPG, edible oil, and crushed stone remain unaffected.

Goods transiting through India from Bangladesh to Nepal and Bhutan are also exempt.The restrictions come in the wake of remarks made by Bangladesh's interim Chief Adviser Muhammad Yunus during a speech in China, where he referred to India's northeastern states as a "landlocked region with no access to the ocean."

Indian officials interpreted the comment as a challenge to the region's connectivity and sovereignty, triggering a diplomatic backlash.Officials in New Delhi have framed the decision as a corrective measure.

One official told ANI, "Bangladesh cannot assume market access without reciprocity. For years, India extended concessions without equal returns. This decision restores balance."Previously, 93 per cent of Bangladesh's exports to India moved through land ports in the Northeast.

The new restrictions are expected to increase logistics costs for Bangladeshi exporters, especially those in the USD 740 million ready-made garment sector, which relies heavily on quick cross-border trade.

Indian authorities have expressed hope that the shift will offer new opportunities to local manufacturers, while also reinforcing the strategic importance of fair trade and regional economic stability.

— ANI

Reader Comments

Rajesh K.

Finally some strong action! Bangladesh can't have it both ways - enjoying our market access while restricting Indian goods. Their remarks about our Northeast were totally uncalled for. Trade should be fair for both sides 🇮🇳

Priya M.

While I understand the need for reciprocity, this might hurt small traders in border states who depend on Bangladeshi goods. Hope our government has plans to support local businesses during the transition period.

Amit S.

Good move strategically. Bangladesh has been taking our friendship for granted. Their comments in China show where their loyalties lie. Time they realize India isn't just a market but an equal partner.

Sunita R.

As someone from West Bengal, I see both sides. Our border markets thrive on this trade. Maybe instead of complete restrictions, there could be phased implementation? Also, hope this doesn't affect cultural exchanges between people.

Vikram J.

The timing is interesting - right after Bangladesh's China visit. Clearly a message being sent. But we must be careful not to push them further into China's arms. Economic diplomacy needs balance. Hope talks resume soon 🤝

Here are 5 diverse Indian perspective comments on the Bangladesh export restrictions: We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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