India Imposes Port Restrictions on Select Bangladeshi Imports Amid Rising Trade Tensions

New Delhi, 17 May 2025 – In a significant move reflecting escalating trade tensions, India has imposed immediate port restrictions on the import of specific goods from Bangladesh, including readymade garments and processed food items. The Directorate General of Foreign Trade (DGFT) announced these measures on Saturday, citing reciprocal actions in response to similar restrictions previously enacted by Dhaka.

Key Highlights of the Restrictions

Readymade Garments (RMG): Imports from Bangladesh are now permitted only through the seaports of Nhava Sheva and Kolkata. Entry via any land ports is prohibited.Business Standard

Other Affected Goods: Items such as processed foods (including baked goods, snacks, and confectionery), fruit-flavoured and carbonated drinks, cotton and cotton yarn waste, plastic and PVC finished goods, dyes, plasticisers, granules, and wooden furniture are barred from entering through Land Customs Stations (LCSs) and Integrated Check Posts (ICPs) in Assam, Meghalaya, Tripura, Mizoram, and the Changrabandha and Fulbari LCSs in West Bengal.@EconomicTimes

Exemptions: Essential commodities like fish, liquefied petroleum gas (LPG), edible oil, and crushed stone remain unaffected by these restrictions.Fortune India

Transit Goods: Goods transiting through India en route to Nepal and Bhutan are exempt from these new regulations.

Background and Implications

This development follows India’s earlier decision on 9 April 2025 to revoke the transshipment facility that allowed Bangladesh to export goods to third countries via Indian ports and airports, excluding Nepal and Bhutan. The revocation was partly in response to controversial remarks by Bangladesh’s interim leader, Muhammad Yunus, suggesting that India’s northeastern states are landlocked without access to the sea except through Bangladesh. These comments were met with strong objections from New Delhi and various Indian political leaders.@EconomicTimes

Trade relations have further strained due to Bangladesh’s restrictions on Indian exports. Since 13 April 2025, Bangladesh halted yarn imports from India through land ports and imposed rigorous inspections on Indian shipments, causing significant delays. Additionally, from 15 April 2025, rice exports from India were not permitted through the Benapole ICP, adding to existing trade barriers.Business Today+1Hindustan Times+1

Bangladesh is a major player in the global textile sector, with readymade garment exports valued at approximately $38 billion in 2023. Of this, around $700 million worth of garments were exported to India, with about 93% entering through land ports in the northeastern states. The new restrictions are expected to impact this trade significantly.Business Today+1Business Standard+1Hindustan Times+2Business Standard+2Business Today+2

Regional Economic Impact

The northeastern states of India, including Assam, Meghalaya, Tripura, and Mizoram, are likely to feel the effects of these restrictions acutely. Previously, these regions benefited from the import of Bangladeshi goods through nearby land ports. The new measures may disrupt local supply chains and affect industries reliant on these imports.

Future Outlook

Officials have indicated that the list of restricted goods will be reviewed periodically to ensure equitable growth and address any emerging trade concerns. The Indian government emphasizes that while it remains open to dialogue, it expects reciprocal treatment and fair trade practices from its neighbours.