Bangladesh Poorer by $770 Million! India's Trade Curbs Hit Garments Hardest

India’s new restrictions on imports from Bangladesh are set to disrupt $770 million (Rs 6,600 crore) in cross-border trade, severely impacting Bangladesh’s economy, according to industry experts.

The Directorate General of Foreign Trade (DGFT) issued a notification on Saturday banning imports of key Bangladeshi goods, including readymade garments, processed foods, cotton waste, plastic products, and wooden furniture, through land customs stations.

Readymade garments, valued at $618 million (Rs 5,290 crore), Bangladesh’s top export to India, are now restricted to only Nhava Sheva and Kolkata seaports, choking a vital trade route. Other affected goods, worth $153 million (Rs 1,310 crore), include carbonated drinks, processed foods, and furniture.

Also Read: India Halts Import of Bangladeshi Garments, Processed Foods at Land Ports

“This move drastically limits Bangladesh’s export channels, especially for garments,” said Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI). The restrictions exclude fish, LPG, edible oil, and crushed stone, and do not apply to goods transiting through India to Nepal or Bhutan.

The curbs follow Bangladesh’s April ban on Indian yarn imports via land ports and India’s earlier termination of trans-shipment facilities for Bangladeshi exports through Indian ports. India, Bangladesh’s second-largest trading partner after China, saw $16 billion in bilateral trade in 2022-23, with Bangladesh exporting $2 billion and importing $14 billion.

The restrictions, effective immediately, bar imports through land customs stations and integrated check posts in Assam, Meghalaya, Tripura, Mizoram, and specific West Bengal points like Changrabandha and Fulbari, escalating trade tensions between the neighbors.

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