India has implemented new restrictions on imported goods from Bangladesh, which amount to approximately $770 million or about 42% of total imports between the two countries. By this decision from the Union Ministry of Commerce and Industry, the entry of some products from Bangladesh will now be allowed only at some sea ports and not through land ports. The issues involve ready-to-wear clothes, processed food, and plastic goods.
The Global Trade Research Initiative found that the decision was likely an answer to Bangladesh's recent introduction of various import restrictions. Garments that used to be imported through various ports are now only allowed through Kolkata and Nhava Sheva. Each year, the market loses $618 million due to these restrictions. This causes significant problems for exporting goods from one of Bangladesh's important business sectors.
Recent changes in Bangladesh's trade policy have led to India imposing new restrictions. Since the end of 2024, Dhaka has made it difficult to import goods from India by banning yarn at land ports and restricting rice, tobacco, fish, and powdered milk imports. From April 2025, Bangladesh started charging Indian buyers 1.8 taka as a transit fee per tonne for every kilometre their cargo travels.
Consequently, Bangladeshi ports are experiencing delays, and Indian shipments are disturbed, so people are asking for more decisive actions in trade talks. On April 9, India canceled its 2020 permission for Bangladesh to use Indian ports and routes to send goods to Europe and the Middle East. Currently, the airport is only open for flight departures to Nepal and Bhutan.
Issues have worsened following recent statements between the countries. During his visit to China, Muhammad Yunus said that the northeastern states of India rely on Bangladeshi access to the sea. The president also allowed Chinese businesses to use Bangladesh's trade routes. For some, these remarks indicate that Dhaka is repositioning its foreign policy.
India's new rules, created using the DGFT's advice, result from rising concern about being overly dependent on other countries and their regional impact. India used this opportunity to reinforce its hold over core logistics areas and renegotiate its bilateral trade with the country.