India Implements New Land Port Restrictions on Bangladeshi Exports
New Trade Restrictions Imposed
The Indian government has enacted new land port restrictions affecting specific Bangladeshi exports to its northeastern states, a decision aimed at achieving 'equality in the relationship' between the two nations.
On Saturday night, India swiftly implemented port restrictions on various goods imported from Bangladesh, following a directive from the Directorate General of Foreign Trade (DGFT).
Sources indicate that while India previously permitted unrestricted exports from Bangladesh, the northeastern region's access had been limited by Bangladesh itself.
This recent action by India is seen as a step towards restoring balanced market access for both countries.
According to sources, Bangladesh has been advocating for equal engagement with India.
In this light, the relationship with Bangladesh is now expected to operate on 'reciprocal terms'.
Reciprocal Measures in Trade
India's decision to restrict imports of ready-made garments from Bangladesh to only two seaports—Kolkata and Nhava Sheva (Mumbai)—is viewed as a reciprocal response to similar trade limitations imposed by Bangladesh on Indian products, including yarn and rice, along with increased inspections on Indian exports.
Sources emphasized that Bangladesh must understand it cannot selectively choose trade terms that favor its interests while denying market access to India, particularly in the Northeast, which should not be treated as a captive market for Bangladeshi exports.
As highlighted by Prime Minister Modi, the Northeast is crucial to the BIMSTEC initiative. The newly available equal market space in this resource-rich region is anticipated to boost manufacturing and entrepreneurship under the Atmanirbhar Bharat initiatives.
Details of the New Directive
Under the latest DGFT directive, all types of ready-made garments from Bangladesh can now only be imported via the Nhava Sheva and Kolkata seaports, with land port access being prohibited.
Moreover, imports of products such as fruit-flavored and carbonated beverages, processed foods, cotton waste, PVC and plastic finished goods (excluding approved industrial inputs), and wooden furniture are now restricted at Land Customs Stations (LCSs) and Integrated Check Posts (ICPs) in Assam, Meghalaya, Tripura, Mizoram, and West Bengal's Changrabandha and Fulbari.
However, essential items like fish, LPG, edible oil, and crushed stone remain unaffected by these restrictions. Goods transiting through India from Bangladesh to Nepal and Bhutan are also exempt from these new rules.
Indian officials are optimistic that these measures will create new opportunities for local manufacturers while reinforcing the importance of fair trade and regional economic stability.