India's restriction on Bangladeshi products via land ports will impact 42pc bilateral imports

India has imposed restrictions on importing goods from Bangladesh via land ports, which will impact approximately USD 770 million worth of products—about 42% of total bilateral imports, according to the Global Trade Research Initiative (GTRI).

As a result of this move, several key Bangladeshi exports—such as ready-made garments, processed foods, and plastic products—can now only enter India through specific seaports. In some cases, land route entry has been entirely banned. For instance, Bangladeshi garments can now only be imported through Kolkata and Nhava Sheva seaports.

GTRI noted that this decision by India is not unilateral; it is seen as a response to various trade restrictions imposed by Bangladesh on Indian exports and Dhaka’s increasing diplomatic tilt toward China.

Tensions escalated further after Bangladesh’s interim government head, Muhammad Yunus, referred to India’s northeastern region as landlocked and lacking seaport access during his visit to China in March 2025. During that visit, Bangladesh and China signed cooperation and investment agreements worth USD 2.1 billion.

India reportedly views the political changes in Bangladesh following Sheikh Hasina’s fall from power as a challenge, as per local media reports.

According to Indian media outlet ANI, since late 2024, Bangladesh has imposed multiple restrictions on Indian exports, including a ban on yarn imports via land ports, strict controls on rice exports, and bans on importing paper, tobacco, fish, and powdered milk. Bangladesh has also introduced a transit fee on the transportation of Indian goods.

Indian sources claim these restrictions and customs hurdles have created difficulties for Indian exporters, particularly impacting development in India’s northeastern region, which relies on Bangladesh for transit.