Fresh Indian trade barriers strain Dhaka-Delhi ties
Staff Reporter :
India has imposed fresh restrictions on the import of nine categories of Bangladeshi products through land ports, further straining bilateral trade relations between the two neighbouring countries. The move was announced in a notification issued on Friday by India’s Directorate General of Foreign Trade (DGFT).
According to the DGFT, “Imports from Bangladesh shall not be allowed through any land port along the India-Bangladesh border. These selected imports will now be regulated with immediate effect.”
However, India has not enforced a complete embargo. The restricted goods may still enter India via sea through Mumbai’s Nhava Sheva Port, a move interpreted as a calibrated restriction rather than an outright ban.
The affected items include raw jute, jute waste, jute yarn (single and plied), woven and bleached jute or flax fabrics, and other bast fibres. Notably, the ban does not apply to exports from Bangladesh to Nepal and Bhutan transiting through Indian land ports.
This is India’s third such measure in as many months. On 17 May, New Delhi imposed curbs on imports of Bangladeshi readymade garments, processed foods, plastic and wooden furniture, yarn and its byproducts, fruits, and soft drinks.
Earlier, on 9 April, India withdrew Bangladesh’s privilege to export goods to third countries via Kolkata Airport, a move widely seen as indicative of shifting diplomatic postures.
Despite these developments, India’s Ministry of External Affairs maintains that it remains committed to constructive engagement.
“We are prepared to engage with Bangladesh on all matters in an environment conducive to mutually beneficial dialogue,” said ministry spokesperson Randhir Jaiswal at a recent press briefing.
Meanwhile, Bangladesh’s interim government has acknowledged the evolving nature of bilateral relations. Foreign Affairs Adviser Md. Touhid Hossain noted, “The previous government had a strong relationship with India. That is no longer the case. The current government is working to improve the relationship.”
Analysts interpret India’s escalating trade measures as reflective of broader geopolitical recalibrations. While ostensibly economic, the actions may also be aimed at signalling political expectations to Bangladesh’s interim administration amid a period of transition and regional flux.
However, the restrictions could backfire economically for India as well. Bangladeshi jute and jute goods are crucial to Indian industries, particularly in West Bengal, where many jute mills depend on affordable imports from Bangladesh. Supply disruptions could lead to higher production costs, threaten mill closures, and affect employment.
Additionally, the closure of land routes – typically the most cost-efficient trade channels – could raise logistics costs for Indian importers, potentially making Indian goods reliant on Bangladeshi inputs less competitive.
In response, Dhaka may consider strategic alternatives.
The continued availability of maritime access through Nhava Sheva Port allows for the redirection of exports, albeit at increased shipping costs. High-level diplomatic engagement with New Delhi is also essential to de-escalate tensions and restore trade confidence.
Experts also suggest that Bangladesh should diversify trade ties across South Asia and ASEAN, reducing reliance on Indian routes by boosting exports to Nepal, Bhutan, and other regional partners. The current restrictions could further serve as an impetus for Bangladesh to enhance domestic industrial capacity and invest in innovation to reduce external vulnerabilities.
As the region’s political landscape continues to evolve, sustained dialogue and economic pragmatism will be critical to stabilising the long-standing partnership between India and Bangladesh.