In a move that could significantly impact bilateral trade, India has imposed new port restrictions on the import of certain consumer goods from Bangladesh, including readymade garments and processed food items.
The restrictions, which took effect immediately, will prevent these goods from entering India through land customs stations in the northeastern states.
According to a notification issued by the Directorate General of Foreign Trade on Saturday, Bangladesh’s ready-made garments (RMG) exports will now be permitted entry into India only through the Kolkata and Nhava Sheva seaports. Imports via land ports, particularly in states like Meghalaya, Assam, Tripura, and Mizoram, along with Phulbari and Changrabandha in West Bengal, have been prohibited.
The restricted items include not just garments, but also plastics, wooden furniture, carbonated and fruit-flavoured drinks, cotton and cotton waste, and processed food items. However, the notification clarified that essential commodities such as fish, LPG, edible oil, and crushed stone are exempt from these curbs. Additionally, Bangladesh’s exports to Nepal and Bhutan transiting through India will not be affected.
This development follows India's earlier decision to end a nearly five-year arrangement that allowed trans-shipment of Bangladeshi exports to third countries via Indian airports and seaports. The tightening of trade routes appears to be a direct response to what Indian officials describe as reciprocal restrictions imposed by Dhaka.
People familiar with the matter said, "Bangladesh continued to impose port restrictions on Indian exports at Land Customs Stations (LCS) and Integrated Check Posts (ICP) bordering the northeastern region." Despite repeated efforts by India to resolve the matter diplomatically, no progress was made, they added.
Further exacerbating the situation, Bangladesh reportedly halted Indian yarn exports across land ports from April 13. Indian rice exports have also faced restrictions, with bans through Hili and Benapole ICPs since April 15. Sources highlighted that Indian goods often undergo excessive inspections at entry points into Bangladesh, adding to trade friction.
Officials also noted that industrial growth in the northeastern states has been adversely affected by "unreasonably high" and "economically unviable" transit charges imposed by Bangladesh. These policies, they argue, have restricted market access for locally manufactured goods and forced the region to rely heavily on primary agricultural exports.
“Bangladesh, on the other hand, has free access to the entire northeast market, creating an unhealthy dependency and stymying growth of the manufacturing sector in the northeastern states,” the sources said.
In light of these challenges and to support the vision of 'Atmanirbhar Bharat', India has now opted to impose port restrictions across all LCSs and ICPs in the Northeast.