India Places Restrictions on Imports from Bangladesh
India has imposed new restrictions on the importation of ready-made garments and various other products from Bangladesh, permitting entry exclusively at the Kolkata and Nhava Sheva sea ports while prohibiting land transit through points in the Northeast. This ban on goods arriving via land routes is now in effect.
As per a recent government directive, imports—including ready-made garments, plastics, wooden furniture, carbonated beverages, processed foods, fruity drinks, and cotton waste—will no longer be allowed through land customs stations and checkpoints located in states such as Meghalaya, Assam, Tripura, and Mizoram, as well as at Phulbari and Changrabandha in West Bengal. This new regulation comes just over a month after India terminated a long-standing five-year agreement that facilitated the transshipment of Bangladeshi export cargo to other countries through Indian ports and airports.
The immediate implementation of these restrictions on Bangladeshi consumer goods seems to be a reaction to Dhaka’s refusal to allow certain value-added products from India’s Northeast to enter their territory using land transit routes. The escalating trade tensions have unfolded alongside growing friction in broader bilateral ties, particularly since the ousting of former Prime Minister Sheikh Hasina, who fled Dhaka amidst massive anti-government demonstrations last August.
The restrictions notification was issued by the Director General of Foreign Trade. Notably, Bangladesh is a significant global supplier of ready-made garments, with exports in this sector valued at approximately $38 billion in 2023. Presently, there are 11 designated land transit points for trade between India and Bangladesh in the Northeast; three are in Assam, two in Meghalaya, and six are situated in Tripura. Previously, India had allowed exports of Bangladeshi products through all land trading points and seaports without significant barriers.
However, Bangladesh has similarly imposed port restrictions on Indian exports at Land Customs Stations (LCS) and Integrated Check Posts (ICP) along the northeastern border, despite discussions on the matter, which yielded no favorable outcomes. Additionally, as of April 13, Bangladesh has halted yarn imports from India via land ports. Sources indicate that Indian exports face stringent inspections upon entry, with rice exports to Bangladesh via Hili and Benapole ICPs being banned since April 15. These land-port restrictions have left northeastern Indian states struggling to access the Bangladeshi market for locally produced goods, allowing only limited entry for primary agricultural products. Conversely, Bangladesh possesses unrestricted access to the northeastern market, which disadvantages local manufacturing and stifles economic development in these states.
To bolster local manufacturing and promote the ‘Atmanirbhar Bharat’ initiative within the Northeastern states, India appears to have determined to enforce port restrictions across all LCSs and ICPs located in Assam, Meghalaya, Tripura, and Mizoram.
