Key Points
- India has imposed strict port restrictions on Bangladeshi imports, impacting $770 million in trade-42% of bilateral imports.
- Readymade garments, processed foods, plastics, and more can now only enter India via Kolkata and Nhava Sheva seaports, not land routes.
- Move is a direct response to Bangladesh’s recent curbs on Indian yarn and other goods, and rising Dhaka-Beijing ties.
- Bangladesh’s garment sector, exporting $618 million to India, will be hit hardest due to higher costs and longer delivery times.
- Indian MSMEs in textiles are expected to benefit from reduced competition.
New Delhi: In a significant escalation of trade tensions, India has imposed sweeping port restrictions on imports from Bangladesh, targeting goods worth $770 million-about 42% of all bilateral imports. The Directorate General of Foreign Trade (DGFT) issued a notification on May 17, mandating that key Bangladeshi exports such as readymade garments, processed foods, plastics, and wooden furniture can now only enter India via the seaports of Kolkata and Nhava Sheva (Mumbai), effectively shutting down all land routes through the Northeast and parts of West Bengal.
Why the Move? Retaliation and Geopolitics
The Indian government’s decision is widely seen as a tit-for-tat response to Bangladesh’s recent restrictions on Indian yarn, rice, and other goods, as well as Dhaka’s growing diplomatic and trade engagement with China. Tensions escalated after controversial remarks by Bangladesh’s interim chief adviser Muhammad Yunus, who described India’s Northeast as “landlocked” and reliant on Bangladesh for ocean access, while inviting China to help develop the Lalmonirhat airbase near the sensitive Siliguri Corridor.
What’s Banned and What’s Allowed?
The new restrictions cover a broad range of products:
- Banned via Land: Readymade garments, processed foods (including bakery and confectionery), fruit-flavoured and carbonated drinks, plastics, PVC finished goods, wooden furniture, cotton, and cotton yarn waste.
- Allowed Only via Sea: These goods can now only be imported through Kolkata and Nhava Sheva seaports.
- Exemptions: Fish, LPG, edible oil, and crushed stone are not subject to these restrictions. Goods transiting through India to Nepal and Bhutan are also exempt.
Impact: Bangladesh’s Garment Sector Faces Major Blow
Bangladesh’s ready-made garment (RMG) industry, which exports $618 million worth of goods to India annually, will be hit the hardest. Previously, 93% of these exports entered India via land ports, especially Petrapole. Now, shipments must use sea routes, increasing costs, delivery times, and logistical complexity. Trade experts warn this could erode Bangladesh’s competitive edge-built on duty-free Chinese fabric imports and export subsidies that made its garments 10–15% cheaper than Indian products.
“The decision can hit Bangladesh apparel exports to India in multiple ways, particularly when a substantial proportion of apparel import into India is through land ports, 76 per cent from Petrapole land port alone,” said Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council.
Indian MSMEs Set to Gain
The restrictions are expected to benefit Indian MSMEs in the textile sector, which have long complained about unfair competition from Bangladeshi exporters. With reduced access to cheap Bangladeshi garments, Indian manufacturers may see higher demand and improved margins.
Regional and Economic Fallout
Bangladesh’s export sector, already facing a $9.2 billion trade deficit with India, is bracing for higher shipping costs, delays, and potential loss of market share to other countries like Vietnam. Indian retailers and importers will also be affected by longer lead times and increased costs. Meanwhile, the move signals a hardening of India’s stance amid concerns about China’s growing footprint in Bangladesh and the strategic vulnerability of the Siliguri Corridor.
What’s Next?
Bangladesh has expressed concern over the new restrictions, warning of disruptions and higher costs, but hopes to resolve the issue through dialogue[9]. The Indian government, however, has made it clear that it expects “a fair and reciprocal environment” in trade relations moving forward.
Summary Table: Key Details of India’s Port Restrictions on Bangladeshi Imports
| Affected Goods | Previous Entry Points | Now Allowed Only Via | Estimated Trade Impact |
|---|---|---|---|
| Readymade garments | Land routes, seaports | Kolkata, Nhava Sheva seaports | $618 million (RMG alone) |
| Processed foods, drinks | Land routes, seaports | Kolkata, Nhava Sheva seaports | Included in $770 million |
| Plastics, wooden furniture | Land routes, seaports | Kolkata, Nhava Sheva seaports | Included in $770 million |
| Fish, LPG, edible oil, stone | All routes | All routes | Exempt |
| Goods for Nepal/Bhutan | All routes | All routes | Exempt |
India’s move marks a decisive shift in its trade policy with Bangladesh, reflecting both economic and strategic calculations as regional power dynamics evolve.
