India Imposes Immediate Restrictions on Bangladeshi Imports

India’s Directorate General of Foreign Trade (DGFT) announced on May 17, 2025, new regulations on imports from Bangladesh through land ports, marking a change in existing trade procedures between the two countries.

This move, described by Indian officials as a “reciprocal measure,” follows Bangladesh’s earlier ban on yarn and rice imports from India through similar routes.

Key Restrictions and Affected Goods

The DGFT’s notification introduces new trade rules. Ready-made garments from Bangladesh can now enter India only through Kolkata and Nhava Sheva seaports. Earlier, they were allowed via several land ports. Imports of processed foods, cotton, plastic products, and wooden furniture are also restricted. These items are now barred from at least six northeastern land entry points, including those in Assam, Meghalaya, Tripura, Mizoram, and West Bengal.

Essential commodities such as fish, liquefied petroleum gas, edible oils, and crushed stone remain exempt from these restrictions and will continue to be permitted through the northeastern states.

Economic Implications for Bangladesh

Bangladeshi exporters have expressed concern over the new restrictions, fearing disruptions in trade flows and increased logistical challenges. The garment industry, a significant contributor to Bangladesh’s economy, is particularly affected.

Anwar-Ul-Alam Chowdhury, former president of the Bangladesh Garment Manufacturers and Exporters Association, commented on the changes. He said rerouting shipments through seaports will cause longer lead times. It will also increase costs for Indian importers buying from Bangladesh.

Companies like Pran-RFL Group, which exports approximately $60 million worth of goods annually to India, including processed foods and plastic products, are also impacted. Director Kamruzzaman Kamal described the restrictions as a significant threat to both the company and the country’s export sector.

Indian Industry’s Perspective

While the restrictions may pose short-term challenges, some Indian industry representatives view them as an opportunity to boost domestic manufacturing. The Indian textile sector, in particular, anticipates potential benefits from reduced import dependency. Industry insiders suggest that the move could create opportunities worth ₹1,000–2,000 crore for Indian textile manufacturers by curbing the indirect entry of Chinese fabrics into the Indian market.

The trade restrictions occur against a backdrop of strained diplomatic relations between India and Bangladesh. The ousting of former Bangladeshi Prime Minister Sheikh Hasina, a long-term ally of New Delhi, has contributed to the tensions. Her subsequent self-imposed exile in India has also played a role.

Bangladesh’s interim government has indicated that it has not received official communication regarding the new restrictions. Commerce Ministry advisor Sheikh Bashir Uddin stated that a formal response would be formulated upon receipt and review of the official notification.

As both nations navigate these trade challenges, stakeholders on both sides emphasize the importance of diplomatic dialogue. They believe it is key to resolving the issues and restoring mutually beneficial trade relations.