Published: May 19, 2025, 04:23 PM
Despite enjoying duty-free access to the Indian market, Bangladesh continues to face a significant trade imbalance with its neighbour. In the 2023–24 fiscal year, Bangladesh’s exports to India stood at $1.57 billion, while imports from India soared to $9 billion, according to data from the Bangladesh Bank and Export Promotion Bureau (EPB).
Bangladesh had hoped to narrow this trade gap following India’s 2011 decision to grant duty-free entry to all Bangladeshi products, except arms and narcotics. While exports initially lagged, they picked up over the years, crossing the $1 billion mark for the first time in 2018–19. However, recent policy changes by India are once again raising concerns among Bangladeshi exporters.
India has now imposed new restrictions on the import of several Bangladeshi goods via land ports. According to a fresh directive from India’s Ministry of Commerce and Industry, ready-made garments from Bangladesh can no longer enter India through land borders. Instead, imports must be routed through the Kolkata and Nhava Sheva seaports. This is a significant blow to the apparel sector, which accounted for $548.8 million of Bangladesh’s exports to India last fiscal year.
In addition, a variety of Bangladeshi goods-including fruits, fruit-flavored drinks, soft drinks, processed foods, plastic items, yarn and its by-products, and furniture-have been barred from entering Indian northeastern states such as Assam, Meghalaya, Tripura, and Mizoram via land customs stations or integrated check posts. These restrictions also apply to two key land customs stations in West Bengal: Changrabandha and Fulbari.
As of Sunday, export of the listed items through Bangladesh’s land ports was reportedly suspended following the Indian order issued a day earlier. The development has prompted concerns among exporters, particularly those dealing in processed agricultural products, plastic goods, and yarn. Last fiscal year, Bangladesh exported $156.8 million worth of processed food items, $44 million in plastic products, $31.3 million in yarn and cotton waste, and $6.5 million worth of furniture to India-mostly through land ports.
This is not the first blow to Bangladesh’s export logistics. In April, India also cancelled a facility that allowed Bangladeshi goods to be transhipped to third countries via Indian ports-system that had been in place since June 2020.
Bangladesh’s Ministry of Commerce has expressed concern over the latest restrictions and is planning to engage with India to seek a resolution. Industry insiders fear these measures could lead to a slowdown in several export sectors already grappling with rising costs and global demand shifts.
