New Delhi, May 18: Bangladesh is set to take a $770 million (₹6,600 crore) hit following India’s decision to restrict imports through land borders. The move, announced by India’s Directorate General of Foreign Trade (DGFT), limits cross-border trade by allowing certain goods only through two seaports — Nhava Sheva and Kolkata — effective immediately.
The biggest impact will be on Bangladesh’s ready-made garments (RMG) sector, which contributes $618 million (₹5,290 crore) to its exports to India. The new directive mandates that RMG imports can now only enter through the specified seaports, severely disrupting existing supply chains.
Other restricted items, valued at around $153 million (₹1,310 crore), include processed foods, carbonated drinks, cotton waste, plastic goods, and wooden furniture. These goods can no longer be brought in via Land Customs Stations (LCSs) or Integrated Check Posts (ICPs) in Assam, Meghalaya, Tripura, Mizoram, and parts of West Bengal.
However, the DGFT clarified that the restrictions won’t apply to goods transiting through India to Nepal and Bhutan, and items like fish, LPG, edible oil, and crushed stone are exempt.
The decision follows Bangladesh’s April ban on importing Indian yarn via land ports, issued by its National Board of Revenue. It also comes after India’s earlier move to suspend a trans-shipment facility that allowed Bangladeshi exports through Indian ports and airports.
India is Bangladesh’s second-largest trade partner, with bilateral trade reaching $16 billion in 2022–23. Bangladesh imported $14 billion worth of goods from India, while exporting only $2 billion.
The new import restrictions are likely to strain bilateral trade ties further, especially affecting small and medium exporters in Bangladesh reliant on land routes.
