Long-Term Employment Effects in Bangladesh Due to India's Import Restrictions

Concerns Over Employment in Bangladesh

A senior official from the International Labour Organization (ILO) in Dhaka expressed concerns regarding the long-term effects of India's import restrictions on employment in Bangladesh. Tuomo Poutianinen, the ILO Country Director, shared these insights with reporters as he concluded his tenure in the country.

Poutianinen noted, “I don’t foresee an immediate impact on the employment landscape in Bangladesh. The majority of jobs are within the informal sector, particularly in agriculture and various industries that can sustain employment independently. However, in the long run, formal businesses may face challenges not only from these restrictions but also due to broader global trade conditions.”

He emphasized the need for Bangladesh to continuously adapt its employment skills and diversify its exports while addressing the quality of labor required by its trading partners. Understanding and analyzing trade relations and negotiations is crucial for the country’s economic health, he added.

On Saturday, the Ministry of Commerce and Industry in India implemented immediate restrictions on the import of various goods from Bangladesh through land ports, following a directive from the Directorate General of Foreign Trade.

According to the Global Trade Research Initiative (GTRI), these restrictions will affect goods valued at approximately USD 770 million, which represents nearly 42% of total bilateral imports. This decision restricts the entry of products like ready-made garments and processed foods to specific seaports, marking a significant shift in trade relations. The new regulations state that all ready-made garments from Bangladesh can now only be imported through the Nhava Sheva and Kolkata seaports, eliminating land port access.