India's latest move to tighten import restrictions on goods from Bangladesh is expected to impact trade worth approximately $770 million (₹6,600 crore), significantly disrupting cross-border commerce through land routes.
Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), noted that the restriction primarily affects readymade garments valued at $618 million (₹5,290 crore), which now must be routed exclusively through two Indian seaports&mdash;Nhava Sheva and Kolkata. This change directly hampers Bangladesh's most significant export category to India.
Additionally, land port access has been revoked for several other items, including fruit-flavoured carbonated beverages, processed foods, cotton and yarn waste, plastic and PVC goods, and wooden furniture, with these goods collectively valued at around $153 million (₹1,310 crore).
The Directorate General of Foreign Trade (DGFT) issued the order on Saturday, citing immediate effect. The directive clearly states that readymade garment imports from Bangladesh will no longer be permitted through any land customs stations (LCSs) or integrated check posts (ICPs) in the northeastern states of Assam, Meghalaya, Tripura, and Mizoram, as well as Changrabandha and Fulbari in West Bengal.
However, the restriction will not apply to Bangladeshi goods transiting through India en route to Nepal and Bhutan. The import of essential commodities such as fish, LPG, edible oil, and crushed stone remains unaffected.
This measure follows Bangladesh&rsquo;s April decision to ban yarn imports from India via land ports, as announced by its National Board of Revenue (NBR). India had earlier withdrawn the trans-shipment facility that allowed Bangladesh to use Indian seaports and airports for global exports.
India ranks as Bangladesh&rsquo;s second-largest trading partner after China. In FY 2022&ndash;23, bilateral trade stood at $16 billion, with Bangladesh importing about $14 billion worth of Indian goods and exporting approximately $2 billion in return.

From garment curbs to trade tensions—India’s port restrictions hit Bangladesh’s key exports and cross-border commerce

India’s Import Restrictions Deal $770 Million Blow to Bangladeshi Exports

From garment curbs to trade tensions—India’s port restrictions hit Bangladesh’s key exports and cross-border commerce

May 18, 2025 | 17:08 IST