India’s Import Restrictions on Bangladesh Could Affect $770 Million Worth of Goods
India Places Restrictions on $770 Million Worth of Bangladeshi Imports
India has introduced new port regulations affecting Bangladeshi imports valued at $770 million, a move interpreted as a reaction to trade restrictions imposed by Dhaka and the intensifying ties between Bangladesh and China under the interim government led by Muhammad Yunus.
The recent port restrictions by India threaten to disrupt $770 million worth of imports from Bangladesh, which constitutes approximately 42% of India’s total imports from the neighboring nation. According to data from the Observatory of Economic Complexity (OEC), in 2023, India exported goods worth $11.3 billion to Bangladesh, while imports stood at $1.89 billion.
Impact on Key Import Sectors
The ready-made garments sector is expected to bear the brunt of these restrictions. Bangladesh ranks as India’s seventh-largest import partner out of 138 countries. Key imports from Bangladesh include ready-made garments, textiles, knitwear, processed food, cotton yarn waste, and jute.
According to the Global Trade Research Initiative (GTRI), ready-made garments, valued at $618 million, now face strict routing limitations, as they can only be imported through two Indian seaports: Nhava Sheva and Kolkata. All overland routes for garment imports have been closed off, significantly curtailing Bangladesh’s most lucrative export channel to India.
Reasons Behind India’s Trade Barriers
The rationale behind India’s trade barriers is seen as a response to Bangladesh’s recent restrictions on Indian exports, including yarn and rice, along with the implementation of a transit fee of 1.8 taka per tonne per kilometer on Indian cargo passing through its territory. This marks a departure from the previously cooperative nature of trade relations.
Moreover, Indian authorities have pointed out Bangladesh’s strategic pivot towards China. The transition from Sheikh Hasina’s pro-India regime to an interim government under Muhammad Yunus has facilitated deeper connections with China. Yunus, who visited China in March 2025, secured significant investments and infrastructure agreements, particularly concerning the sensitive Teesta River project, which is of great concern to India.
