India has imposed restrictions on imports worth USD 770 million from Bangladesh through land ports, effectively limiting nearly 42 per cent of total bilateral imports, according to the Global Trade Research Initiative (GTRI), a trade-focused research group.
The move follows a directive issued by the Directorate General of Foreign Trade (DGFT) under the Union Ministry of Commerce and Industry, which came into immediate effect on Saturday.
The new rules restrict key Bangladeshi exports, including garments, processed foods, and plastic items, to select sea ports, effectively barring them from land routes that previously served as primary trade channels.
The most affected sector is Bangladesh’s garment industry, valued at USD 618 million annually, which will now be restricted to only two designated sea ports, cutting off access through land routes that had been critical to its supply chain.
The GTRI noted that this decision will severely impact Bangladesh’s most lucrative export channel to India.
Indian textile manufacturers have long expressed concerns over what they describe as unfair advantages enjoyed by Bangladeshi competitors, who benefit from duty-free imports of Chinese fabric and substantial government export subsidies, giving them a 10-15 per cent pricing edge in the Indian market.
The GTRI report added that the restrictions appear to be a response to Bangladesh’s own trade barriers, which have increasingly targeted Indian exports.
Also read: India limits import of Bangladeshi goods
This includes a recent ban, imposed in April 2025, on Indian yarn imports through five major land ports, along with tighter controls on rice shipments and bans on dozens of Indian goods, including paper, tobacco, fish, and powdered milk.
Dhaka has also introduced a transit fee of 1.8 taka per tonne per kilometre on Indian goods moving through its territory, further straining bilateral trade.
The report also highlighted a shift in Dhaka’s foreign policy, noting that the fall of the pro-India Sheikh Hasina government in mid-2024 and the rise of an interim administration under Muhammad Yunus has led to a noticeable tilt towards Beijing.
Yunus’s visit to China in March 2025 yielded USD 2.1 billion in fresh investments and cooperation agreements, further deepening ties between the two countries.
Yunus recently sparked diplomatic friction with India during a speech in China, where he described India’s northeastern states as a “landlocked region with no access to the ocean,” a remark viewed by Indian officials as undermining the region’s connectivity and status.
The GTRI concluded that these recent developments, including infrastructure projects like the Teesta River development, pose a significant challenge to India’s regional influence.
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