Overview

• India's Directorate General of Foreign Trade issued a directive on May 17 restricting Bangladeshi imports, including garments and processed foods, to Kolkata and Nhava Sheva seaports, barring land port entry.
• The restrictions impact 42% of Bangladeshi exports to India, valued at $770 million annually, with garments alone accounting for $618 million of this trade.
• The move follows Bangladesh's bans on Indian yarn and rice imports, stricter customs checks, and transit fees for Indian goods, which New Delhi views as unfair trade practices.
• India also terminated a 2020 transshipment facility that allowed Bangladeshi goods to access third countries via Indian ports, citing congestion and reciprocity concerns.
• Observers link the trade curbs to Bangladesh's growing alignment with China and Pakistan, including remarks by interim leader Muhammad Yunus undermining India's northeastern region.