India has imposed new restrictions on the import of Bangladeshi goods, significantly curbing access through land transit points in the northeastern region. The move, effective immediately, allows select goods—such as ready-made garments—to enter India only through the sea ports of Kolkata and Nhava Sheva, according to a government notification issued late Saturday.
Readymade garments restricted to two ports
As per the new order, India has barred the import of ready-made garments from Bangladesh via all land ports. These garments can now only enter the country through Kolkata and Nhava Sheva seaports. Bangladesh, a major global exporter of ready-made garments (RMG), sent goods worth an estimated USD 38 billion globally in 2023. Of that, around USD 700 million worth was exported to India—93% of which came through land ports.
Several items blocked from northeast entry points
Alongside garments, the new notification restricts imports of other consumer items—such as plastics, wooden furniture, processed food, carbonated drinks, cotton, cotton yarn waste, and fruit-flavoured beverages—from entering through land customs stations and check posts in the northeastern states of Meghalaya, Assam, Tripura, and Mizoram. The restrictions also extend to the Phulbari and Changrabandha posts in West Bengal.
However, India clarified that these port restrictions would not affect imports of fish, LPG, edible oil, and crushed stone from Bangladesh. Similarly, Bangladesh’s exports to Nepal and Bhutan via Indian territory remain unaffected.
Action follows end of trans-shipment facility
This decision comes over five weeks after India withdrew a nearly five-year-old facility that allowed Bangladesh to trans-ship export cargo to third countries through Indian ports and airports.
The Directorate General of Foreign Trade issued the latest notification, marking a significant policy shift in bilateral trade.
Trade retaliation amid diplomatic rift
According to people familiar with the matter, India’s move appears to be in response to Bangladesh’s refusal to allow certain value-added goods from India’s northeastern region to enter via land transit points.
“There has been a sharp downturn in India-Bangladesh relations after deposed prime minister Sheikh Hasina fled Dhaka and took shelter in India in August last year in the face of a massive anti-government protest,” a source familiar with the development said.
Trade imbalance with Bangladesh blamed
Industry sources pointed to Bangladesh’s persistent restrictions on Indian exports. These include rigorous inspection processes, the recent stoppage of yarn exports from India from April 13, and bans on rice exports through Hili and Benapole since April 15.
“Industrial growth in the northeastern states suffered due to imposition of ‘unreasonably high’ and ‘economically unviable’ transit charges levied by Bangladesh,” they added.
The decision-makers highlighted that these policies have denied northeastern states critical access to Bangladeshi markets for locally manufactured goods, limiting trade primarily to agricultural produce. Conversely, Bangladesh continues to enjoy unrestricted access to the northeastern market, which officials say has led to economic dependency and stagnation in local industry growth.
Focus on local manufacturing and ‘Atmanirbhar Bharat’
“In order to promote ‘Atmanirbhar Bharat’ and support local manufacture in the Northeastern states, it is understood that India has decided to impose port restrictions across all LCSs and ICPs in Assam, Meghalaya, Tripura and Mizoram,” the officials said.
This move also reflects India’s intent to address a growing perception of asymmetry in trade ties with Bangladesh, especially in light of the recent political instability and communal unrest in the neighbouring country under the interim government led by Muhammad Yunus.
What’s next?
With 11 land transit points in the northeast facilitating India-Bangladesh trade—three in Assam, two in Meghalaya, and six in Tripura—analysts believe this decision could dramatically reduce trade volume, strain diplomatic ties, and trigger retaliatory actions from Dhaka.
For now, India has signalled that trade cooperation will depend on reciprocity and balanced access.
