India has set new rules to restrict imports of certain goods from Bangladesh. Specifically, the Directorate General of Foreign Trade (DGFT), under the Commerce Ministry, issued a notification on Saturday. It announced “port restrictions on the import of certain goods such as readymade garments, processed food items etc., from Bangladesh to India,” the ministry said.
Port Restrictions to Control Trade
The new rules limit the ports where specific Bangladeshi products can enter India. Consequently, the government aims to control trade more strictly. However, these restrictions do not apply to Bangladeshi goods passing through India to Nepal and Bhutan.
For example, the order bans readymade garments from entering India through land ports. Instead, these must come only through the seaports of Nhava Sheva and Kolkata.
Similarly, for fruits, fruit-flavored and carbonated drinks, processed foods like snacks, chips, and sweets, cotton waste, plastic goods, dyes, plasticizers, granules, and wooden furniture, the shipments cannot enter through land customs stations (LCSs) or integrated check posts (ICPs) in Assam, Meghalaya, Tripura, Mizoram, and certain West Bengal ports like Changrabandha and Fulbari.
Some Goods Are Exempt
Nevertheless, the restrictions do not apply to fish, LPG, edible oil, and crushed stone from Bangladesh. To enforce these rules, India added a new paragraph in its import policy, which came into effect immediately.
End of Transshipment Facility
Moreover, on April 9, India stopped allowing Bangladesh to use its ports and airports for transshipment. This facility had helped Bangladesh export goods to the Middle East, Europe, and other countries, except Nepal and Bhutan.
This decision followed a statement by Muhammad Yunus, Bangladesh’s interim government head. While speaking in China, Yunus claimed that India’s seven northeastern states are landlocked and depend on Bangladesh for ocean access. He also called Bangladesh the “only guardian” of the Indian Ocean in the region. Furthermore, he invited China to send goods through Bangladesh worldwide.
India reacted strongly to these comments, and political leaders across parties criticized Yunus.
Impact on India-Bangladesh Trade
India had granted the transshipment facility in June 2020 to ease exports from Bangladesh. However, Indian exporters, especially in apparel, wanted the facility withdrawn.
Relations between the two countries worsened after attacks on minorities in Bangladesh, especially Hindus. Since Bangladesh competes with India in textiles, trade between them reached USD 12.9 billion in 2023-24.