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India’s New Trade Restrictions Target $770 Million in Bangladeshi Imports

India enforces seaport-only rules and bans land-route imports of Bangladeshi goods, prompting diplomatic overtures from Dhaka and industry shifts in both nations.

BANGLADESH TEXTILE
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Overview

  • India’s Directorate General of Foreign Trade has restricted Bangladeshi imports of garments, processed food, and other goods to Nhava Sheva and Kolkata seaports, banning land-route entries across key border states.
  • The new measures, effective immediately, impact 42% of Bangladeshi exports to India, valued at approximately $770 million annually.
  • Bangladesh’s interim government has signaled willingness to negotiate but reports no formal communication from India regarding the restrictions.
  • Indian textile manufacturers anticipate a Rs 1,000–2,000 crore boost as the policy aims to curb duty-free imports and strengthen domestic production under the ‘Make in India’ initiative.
  • Global brands and retailers reliant on Bangladeshi imports via land routes face potential supply chain disruptions, with adjustments to ocean freight expected to increase costs and delays.