BD-India trade sees no sizable growth after regime change

BENAPOLE, Dec 06: Bangladesh's trade with India has not witnessed any mentionable growth as expected in the year since the change of government on August 05, 2024.

Instead, multiple barriers have caused a steady decline in import-export activities through the Benapole land port-one of the busiest gateways for bilateral trade.

According to port data, imports through Benapole dropped by 75,746 tonnes, while exports fell by 75,232 tonnes compared to the previous fiscal year. Rail-based trade also decreased by 29,000 tonnes.

Statistics from Benapole Customs show that Bangladesh imported 2,038,780 tonnes of goods from India in the financial year (FY) 2024-25, down from 2,114,509 tonnes in the FY 2023-24. In the previous fiscal years, imports stood at 1.445 tonnes in the FY 2022-23, 2.114 tonnes in the FY 2021-22, 2.644 tonnes in the FY 2020-21, and 2.038 tonnes in the FY 2019-20. In the FY 2018-19, the figure was 2.011 tonnes.

Traders warn that unless both countries withdraw the series of restrictions imposed on imports and exports, a major trade and revenue deficit may happen.

Port authorities, however, say they are ready to take up the issues at bilateral meetings if the government instructs them to do so.

Before August 5, 2024-when political change unfolded-Benapole handled 500-600 trucks of Indian imports daily, while 250-300 trucks carried Bangladeshi goods into India.

However, political instability following the regime change and multiple rounds of Indian restrictions sharply reduced trade volume.

Since August 5, 2024, India has imposed three separate bans on the import of Bangladeshi goods.

On April 8, India stopped the transshipment of Bangladesh-made garments to third countries via Indian airports.

Later, on May 17, a new notification restricted the import of ready-made garments, yarn, plastic and wooden products, fruits, and fruit-based items from Bangladesh through land ports.

Earlier, on April 15, Bangladesh imposed its own import ban on several Indian items-including yarn, newsprint, cigarette paper, duplex board, kraft paper, potatoes, powdered milk, tobacco, radio-TV components, bicycles, formica sheets, ceramic and sanitary ware, stainless steel products, marble tiles, and mixed fabrics-citing protection of local industries.

Benapole-based traders say the ongoing restrictions are severely disrupting the flow of essential and industrial goods. Compared to the previous fiscal year, total imports declined by 631,330 tonnes, while exports fell by 75,232 tonnes. Rail trade also dropped by 29,000 metric tonnes.

Mojtaffizzoha Selim, office secretary of the Benapole C&F Agents Association,said: "Change of government is normal, but India should maintain stability in its trade policy despite political shifts. That's the expectation."

Aminul Haque, vice president of the Benapole Importers and Exporters Association, said: "India's repeated restrictions are widening the trade deficit. Bangladesh has also banned several Indian products.

As a result, both imports and exports of key commodity groups have declined."

Matior Rahman, chairman of the India-Bangladesh Land Port Import-Export Committee, noted that poor infrastructure at border ports is also obstructing trade expansion.

He added that the long-discussed BBIN (Bangladesh-Bhutan-India-Nepal) motor vehicle agreement has yet to be implemented.

"Ports with high demand need urgent infrastructural upgrades," he said.

Benapole Railway Station Master Aynal Hasan said the last known large consignment through rail was on November 23, when ACI Motors imported 100 tractors from India.

Passenger rail movement on the Dhaka-Benapole-Kolkata route remains suspended since August 5 due to India's restrictions.

Benapole Land Port Director Shamim Hossain said that on November 25, only 243 trucks of Indian goods entered Bangladesh via Benapole, while 45 trucks carried goods from Bangladesh to India.

"Trade has slowed due to restrictions, but we are ensuring quick handling of the consignments that do arrive," he said, adding that the suspension of border-level trade meetings has delayed problem-solving. "If both governments agree, discussions can resume at any time," he added.

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