In a significant move aimed at ensuring parity in trade relations, India has imposed restrictions on certain exports from Bangladesh through its North Eastern land ports. The decision, which includes curbs on ready-made garments and other goods, comes in response to Dhaka’s earlier trade limitations on Indian goods transiting to or entering Bangladesh via land routes.
According to officials familiar with the development, the new Indian measures are intended to restore a sense of “reciprocity” in bilateral trade. “India had previously allowed unrestricted exports from Bangladesh, including access to markets in the North East. However, Bangladesh imposed several barriers on Indian imports from the same region. These new restrictions aim to create a balanced and fair trading environment,” a source said.
Under the new policy, ready-made garment imports from Bangladesh will now be allowed only through two sea ports — Kolkata and Nhava Sheva in Mumbai. Previously, a significant share of these garments, which were valued at over $600 million in the 2024–2025 fiscal year, entered India through land ports. The shift is likely to impact Bangladeshi exporters, especially those dependent on quick and cost-effective land transit routes.
The Ministry of Commerce and Industry has also expanded the list of restricted items to include fresh fruit-flavored carbonated drinks, processed food items, cotton yarn and yarn waste, wooden furniture, and plastic finished goods. These products can no longer enter India via land ports in Assam, Meghalaya, Tripura, and Mizoram, as well as two ports in West Bengal.
This escalation follows Bangladesh’s recent decision to intensify inspections of Indian goods at its land ports, resulting in significant delays for Indian traders. Dhaka had also suspended the import of Indian cotton yarn and rice through land routes after the expiration of a duty-free import window in April.
Tensions have been rising between the two neighbors in recent months. In a related move, India recently canceled a transshipment agreement signed in 2020, which had allowed Bangladesh to export goods to third countries using Indian ports and airports. Indian authorities cited port congestion as the reason for the cancellation.
Further straining ties, remarks made by Muhammad Yunus, the head of Bangladesh’s interim government, during a visit to China drew criticism from Indian officials. Yunus had characterized Bangladesh as the “only guardian of the ocean” for India’s landlocked North East, suggesting the region was a natural market for Bangladeshi exports. Indian officials rejected the notion, asserting that the North East is an integral part of national economic planning under the Atmanirbhar Bharat initiative and a key region within the BIMSTEC framework.
“Bangladesh cannot expect to cherry-pick favorable terms in bilateral trade while denying market access to India’s North East. Equality in market access and transit is essential,” an Indian official commented.
India’s renewed focus on the BIMSTEC grouping, particularly following the recent summit in Bangkok, underscores the strategic importance of the North East as a bridge to Southeast Asia. Prime Minister Narendra Modi’s meeting with Muhammad Yunus at the summit — their first since the ousting of Sheikh Hasina — further highlighted the complex and evolving dynamics between the two countries.
The Indian government believes that a level playing field in trade will not only promote fairness but also boost industrial development and entrepreneurship in the North East, leveraging the region’s resources and strategic location.
