In a swift retaliatory response, India on Saturday curbed imports of ready-made garments (RMG) and consumer products from Bangladesh via land border crossings in the northeast and restricted their entry to just two large seaports Nhava Sheva and Kolkata. The action comes in response to Bangladesh’s persistent port restriction of Indian exports and other trade tensions that have heightened tensions between the two adjoining nations.
Scope, Impact of the New Measures between India and Bangladesh
The fresh curbs were officially notified by the Directorate General of Foreign Trade and cover a broad array of Bangladeshi exports. They involve RMG, plastic and PVC items, wooden furniture, processed foods such as bakery and confectionery, beverages, and cotton waste. Import of these has been prohibited through 11 land customs stations in northeast states of Meghalaya, Assam, Tripura, and Mizoram, as well as two in West Bengal Phulbari and Changrabandha.
These limitations, however, will not target Bangladeshi goods passing through India to Bhutan and Nepal.
Reaction of India to Chronic Trade Imbalances
Senior officials who were aware of the situation reported that the move was a direct consequence of Bangladesh’s long-standing restrictions on Indian exports through land routes, particularly to the northeast. They pointed out that while Bangladesh had free access to Indian land ports and markets such as the entire region of the northeast Indian merchants had restrictions and hold-ups, particularly after Dhaka closed down yarn imports through land ports from April 13, 2025. Rice exports were also closed from April 15.
“Locally produced products from the northeastern states are not available in Bangladeshi markets, which is an unhealthy dependence,” one official explained. Another stated, “India has crossed the principle of reciprocity, but the same spirit has not been reciprocated by Bangladesh.”
Exports through West Bengal’s Siliguri corridor have been restricted to prevent evasion of the curbs. The action is intended to spur domestic production in the northeast as per central government plans.
Strategic and Diplomatic Backdrop
Trade tensions are a part of a broader diplomatic chill in the aftermath of the removal of the previous Bangladeshi PM Sheikh Hasina. Her replacement, Muhammad Yunus, annoyed New Delhi by calling India’s northeast landlocked and encouraging Chinese investment during his visit to China.
India’s reaction also marks a strategic turnaround. PM Modi underlined the centrality of the region in the BIMSTEC context, and External Affairs Minister S. Jaishankar underlined initiatives towards improved regional connectivity by way of new transport routes.
Bilateral trade was at $12.9 billion in FY24, with exports by India at $11.06 billion and imports from Bangladesh at $1.8 billion.
