Dhaka awaits official word on India’s import curbs

Staff Reporter :

Commerce Adviser SK Bashir Uddin has confirmed that Bangladesh has not yet received any official notification from India regarding reported import restrictions on around seven categories of goods – including processed food items and garments – via land ports.

Speaking to reporters at the Secretariat on Sunday, Bashir Uddin stated that appropriate action would be taken if the restrictions are formally confirmed.

“We have not received any official communication from India so far. However, based on information from social media and news reports, it appears that India has imposed certain restrictions at land ports, particularly at border points such as Akhaura and Dawki,” he said.

“We are currently assessing the situation, with various government agencies involved. We are analysing the potential impact and will determine the necessary course of action accordingly,” the adviser added.

When asked about the possible impact on Bangladesh’s exports to India, he noted that while furniture exports to India are relatively small, clothing items constitute a significant portion of exports.

“Our products remain competitive primarily due to their pricing. We hope this competitive edge will continue to benefit consumers and businesses in both countries,” he said.

The recent restrictions follow India’s April decision to suspend transshipment facilities for Bangladeshi cargo destined for third countries via Indian land borders, which had raised concerns about tightening trade regulations.

However, Bashir Uddin clarified, “This is a separate issue from the transshipment matter. Indian traders are likely to be affected as well. Given our geographical proximity, the two countries remain economically interdependent.”

He added, “It will take a day or two to fully understand the implications, after which we will decide on the appropriate response.”

The adviser reiterated Bangladesh’s commitment to trade liberalisation, stating, “We believe in trade liberalisation and promoting greater inclusion in trade. It is our responsibility to safeguard the interests of both consumers and traders.”

He also acknowledged the significant trade imbalance with India. “India enjoys a considerable trade surplus with Bangladesh, and addressing this disparity will require time.”

Meanwhile, India’s Directorate General of Foreign Trade (DGFT) issued a notification on Saturday evening imposing new restrictions on the import of garments, agro-processed foods, and other goods from Bangladesh through land ports.

According to the notification, garments – the largest Bangladeshi export to India – will only be permitted entry through two sea ports: Kolkata and Nhava Sheva near Mumbai. These rules took immediate effect.

According to a report by the Global Trade Research Initiative (GTRI), India’s restrictions at land ports are expected to impact approximately $770 million worth of Bangladeshi imports.

Bangladesh continues to face a significant trade deficit with India. According to the latest Bangladesh Bank report, India remains the country’s second-largest source of imports after China.

During the 2023-24 fiscal year, Bangladesh’s exports to India reached around $1.85 billion, while imports from India stood at approximately $11.07 billion, resulting in a substantial trade deficit exceeding $9 billion.