New Delhi53 minutes ago
- Copy link
The import sanctions imposed by India can reduce Bangladesh’s 2 billion export market for India by 15-20%.
India has imposed new sanctions on imports from Bangladesh. The move is likely to put further pressure on the weak economy of Bangladesh.
The Directorate General of Foreign Trade (DGFT) announced this on 17 May under the Ministry of Commerce and Industry, Government of India. The move is seen as the increasing tension between the two countries and the response to Bangladesh’s recent policies.
Question 1: Which new import restrictions have India imposed on Bangladesh?
answer: India has banned the import of several consumer goods from Bangladesh through the land border. These include:
- Readmade garments like shirt, pants, T-shirts
- Biscuits, chips, confectionery, snack processed food items
- Carbonated and Energy Drinks
- Plastic products like bucket, toys, chairs
- Cotton West and Industrial Grade Cotton By Products
- Sofa, bed, table, chairs like wooden furniture
These goods can now not enter India through North-East (Assam, Meghalaya, Tripura, Mizoram) and Land Custom Stations (LCS) or Integrated Check Posts (ICP) of West Bengal such as Petrapol (West Bengal), Sutrakandi (Assam), or Doki (Meghalaya). Instead, Bangladesh will have to use the sea route through the Nava Sheva Port in Mumbai or Shyama Prasad Mukherjee Port in Kolkata.
However, these restrictions will not be applied to some essential commodities such as fish and seafood, LPG, Edible Oil and Crust Stone. Also, there has been no restriction on the goods sent to Nepal and Bhutan through Bangladesh, as India wants to maintain friendly relations with these countries.
Question 2: Why has India imposed these restrictions?
answer: This step is being seen in response to Bangladesh’s recent trade policies. In April 2025, Bangladesh imposed ban on Indian yarn imports through land ports and created non-tariff barriers by raising the time taken in custom clearance for Indian trucks on Benapol-Petrapol checkpost.
Their purpose was to prevent Indian products from entering Bangladesh. Apart from this, the statement of anti-India statement of Muhammad Yunus, the head of the interim government of Bangladesh, especially in China, inspired India to take this step.
Bangladesh leader said …
Seven states of India… Eastern parts of India… which are called Seven Sisters, these are landlocked areas of India. There is no way to reach the sea. We are the only patron of the sea for this entire region. Therefore it opens the gates of the huge possibility. So it can be expanded for the Chinese economy… Create things, produce … take things to the market… Bring things to China and reach the rest of the world.
Question 3: What will be the effect of these restrictions on Bangladesh’s economy?
answer: These restrictions can weaken Bangladesh’s already weak economy more …
- Garment Industry: Last year, readymade garments from Bangladesh to India had a export of $ 700 million. Of these, 93% of readymade garment exports were done through land routes in India. Shifting on the sea route will increase the shipping cost by 20-30%, which will make these products less competition.
- Trade will decrease: These sanctions may reduce Bangladesh’s export market of $ 2 billion to India by 15-20%. This will increase its trade deficit even more. Thousands of workers’ jobs may be in danger in garment, food processing, and logistics sector.
- Economic pressure: Between the lack of foreign exchange reserves and the devaluation of Taka, the increase in export cost will bring more pressure on Bangladesh’s payment balance. At the same time, the competition of small and medium enterprises will be reduced due to strict rules.
Bangladesh is the second largest exporting country of clothing in the world.
Question 4: Which sectors of Bangladesh will be the most affected?
answer: The garment industry providing employment to millions of people will be the most affected. Apart from this, processed food, plastic, and furniture industry will also have to face rising costs and strict custom rules. Small and medium enterprise markets struggling with lack of resources may lose or shut down.
Question 5: What are the political employees of this step?
answer: These restrictions are India’s message to Bangladesh that trade should be based on mutual gains. This reflects India’s displeasure with Bangladesh’s recent policies and Younis’s stimulating statements. This step is also part of India’s strategy to stop China’s growing influence in Bangladesh.
Question 6: Will it benefit India’s domestic industries?
answer: Yes, the curment, food, and furniture industry of India can benefit from curbing cheap Bangladeshi imports, especially in North-East and West Bengal. However, consumers of these regions may have to pay a higher price for the goods received from Bangladesh at cheap prices first.
Question 7: What can Bangladesh do to reduce effects?
answer: Bangladesh has some options, although all are challenging:
- Bangladesh can relax the sanctions by negotiating with India and try to improve relations.
- Can look for new export destinations. However, this is a long process given 15% exports to India.
- Can invest in local production to reduce dependence on India. This will require heavy resources.
Bangladesh’s attitude changed after Sheikh Hasina’s coup
Prime Minister Sheikh Hasina had to leave the country after the rebellion in Bangladesh in August 2024. He took refuge in India. The interim government was formed in Bangladesh and Mohammad Yunus became its head. The India-Bangladesh relations were very strong at the time of Sheikh Hasina, but after that the anti-India activities of Bangladesh increased.
Many Bangladeshi leaders made anti -India statements and targeted Hindu leaders living in Bangladesh. Due to this, the tussle of both countries increased further, besides Bangladesh is constantly strengthening its partnership with Pakistan.