India has quietly tightened its borders against Bangladeshi imports through land routes, marking a sharp shift in trade policy that threatens to escalate economic and diplomatic tensions between the two South Asian neighbours.
In a move issued by the Directorate General of Foreign Trade (DGFT) and notified by the Union Ministry of Commerce and Industry, several key Bangladeshi goods – including readymade garments, processed foods, and plastic products – can no longer enter India through land ports.
The restrictions, effective immediately, impact goods worth around $770 million, or nearly 42% of bilateral imports from Bangladesh, according to the Global Trade Research Initiative (GTRI).
Key Bangladeshi exports, such as readymade garments, processed foods, and plastic products, are now restricted to specific seaports like Kolkata and Nhava Sheva, with some products entirely barred from land routes.
For instance, Bangladeshi garments, a major export, can no longer enter via land ports.
The GTRI attributes India’s decision to Bangladesh’s increasing trade barriers against Indian exports and Dhaka’s growing diplomatic alignment with China.
Tensions escalated after Bangladesh’s interim chief adviser, Muhammad Yunus, during a March 2025 visit to China, described India’s northeastern states as a “landlocked region without seaport access.” The visit yielded $2.1 billion in Chinese investment and cooperation agreements, signalling a shift since the fall of Sheikh Hasina’s government in mid-2024, which India views as a strategic challenge.
Bangladesh has restricted Indian exports since late 2024, banning yarn imports through land ports, imposing strict controls on rice shipments, and prohibiting paper, tobacco, fish, and powdered milk.
Additionally, Dhaka introduced transit fees on Indian goods and tightened customs procedures, hampering Indian exporters.
An Indian official told ANI, “These measures disrupt bilateral trade fairness, and Bangladesh must address these issues constructively.”
The trade restrictions also have implications for India’s northeastern states. Bangladesh’s transit fees and trade barriers have constrained industrial growth in the region, which relies heavily on access to both Indian and Bangladeshi markets. A government source explained, "Due to Bangladesh’s landport restrictions, the northeastern states suffer from lack of access to the Bangladesh market to sell locally manufactured goods, restricting market access to primary agricultural goods only."
Source: The Economic Times