India Tightens Port Restrictions on Certain Imports from Bangladesh

India has tightened its port restrictions on the import of certain goods from Bangladesh, specifically targeting ready-made garments and processed food items. According to a government notification issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce, these new curbs will apply to specific categories of goods but will not affect Bangladeshi shipments transiting through India to Nepal and Bhutan. Imports of ready-made garments from Bangladesh will now only be allowed through the Nhava Sheva and Kolkata seaports and are banned from all land ports. This move is aimed at regulating the flow of goods and ensuring better control over quality and compliance with Indian standards. For goods such as fruits, carbonated and fruit-flavored beverages, processed food items like snacks and baked goods, plastic and PVC finished goods, cotton and cotton yarn waste, dyes, plasticisers, granules, and wooden furniture, imports will not be allowed through land customs stations (LCSs) and integrated check posts (ICPs) in Assam, Meghalaya, Tripura, Mizoram, and at Changrabandha and Fulbari in West Bengal. These restrictions are effective immediately and are being implemented through a revision in India’s import policy specific to Bangladesh. However, the restrictions do not apply to the import of fish, liquefied petroleum gas (LPG), edible oil, and crushed stone. These essential goods will continue to be allowed through all designated ports to ensure that the supply chain remains uninterrupted. The move follows a series of diplomatic tensions between India and Bangladesh. On April 9, India withdrew a transshipment facility that allowed Bangladesh to export goods to global destinations, excluding Nepal and Bhutan, via Indian ports and airports. This decision came after controversial remarks made by Bangladesh’s interim government chief, Muhammad Yunus, during a visit to China. Yunus referred to India’s northeastern states as “landlocked” and claimed Bangladesh was the “only guardian” of the Indian Ocean in the region. He also invited China to use Bangladeshi territory for trade access, which triggered strong reactions from Indian political leaders. India had granted the transshipment facility to Bangladesh in June 2020, which significantly benefited Bangladeshi exporters. However, Indian textile exporters had previously urged the government to reconsider this concession, citing growing competition. The recent restrictions are seen as a response to these concerns and the broader geopolitical tensions between the two nations. India-Bangladesh relations have recently cooled amid concerns in New Delhi over increasing attacks on minorities in Bangladesh, particularly Hindus. Bilateral trade between the two nations stood at $12.9 billion in the 2023–24 financial year. Despite the current tensions, both countries continue to engage in dialogue to address their mutual interests and concerns. The new port restrictions are expected to have a significant impact on the trade dynamics between India and Bangladesh, particularly on the import of ready-made garments and processed food items. Indian authorities have emphasized the need for compliance with quality standards and regulatory requirements to ensure fair trade practices and protect domestic industries. The move also reflects India’s broader strategy to enhance its economic and strategic interests in the region, while maintaining a balance with its diplomatic relations with neighboring countries. As the situation evolves, both India and Bangladesh will likely continue to engage in negotiations to find mutually beneficial solutions to their trade and security concerns.