Bangladesh seeks diplomatic solution as India imposes trade restrictions via land ports

India has imposed a sudden restriction on imports of several Bangladeshi goods via land ports, including key export items such as ready-made garments. The move, effective from Saturday (May 17), has created uncertainty among Bangladeshi exporters who rely heavily on the land route as the most cost-effective channel for trade with India.

According to the Ministry of Commerce, the government of Bangladesh is not planning an immediate retaliatory response but will pursue a diplomatic resolution to the issue. Senior ministry officials believe the Indian decision is a reciprocal action in response to recent non-tariff measures imposed by Bangladesh on Indian exports, including restrictions on yarn imports and the imposition of transit fees.

“We are not considering a counter-ban,” Commerce Secretary Md. Mahbubur Rahman told Jago News. “Instead, we are assessing the impact on our exports and will move forward with diplomatic discussions.”

He further added that tit-for-tat actions would only harm bilateral relations and trade. “We want to resolve this through dialogue, not hostility. We’ll work through forums such as the CEO Forum, which includes business leaders and policymakers from both countries,” he said.

In response to the growing concerns, the Ministry of Commerce has called an emergency inter-ministerial meeting for Tuesday, May 20. The meeting, to be chaired by the Commerce Secretary, aims to assess the challenges and determine immediate actions. Representatives from the Ministry of Foreign Affairs, National Board of Revenue, Bangladesh Land Port Authority, Export Promotion Bureau, and various trade bodies including FBCCI, BGMEA, and the India-Bangladesh Chamber of Commerce and Industry have been invited.

Ayesha Akhter, Additional Secretary of the Foreign Trade Division, noted that a clear action plan would be formulated following the meeting, as per local media reports.

Experts have also weighed in on the issue, urging a strategic and non-confrontational response. “We should avoid escalating the situation,” said Zahid Hussain, former lead economist at the World Bank’s Dhaka office. “Bangladesh must first understand the rationale behind India’s decision and then negotiate a resolution.”

Most Indian media outlets have portrayed the move as retaliation for Bangladesh’s recent restrictions on Indian exports. Earlier in April, India withdrew transshipment privileges for Bangladeshi goods passing through Indian ports to third countries. In response, Bangladesh restricted yarn imports via land routes.

Trade analysts warn that continued tit-for-tat measures could undermine bilateral and regional trade development. Dr. Selim Raihan, Executive Director of the South Asian Network on Economic Modeling (SANEM), said such non-tariff barriers could create long-term complications for Bangladeshi exporters and strain economic cooperation in the region.

As the situation develops, exporters and economists alike are calling for sincere, transparent, and strategic efforts from both sides to avoid further disruption and to protect the fragile but important trade ties between the two nations.