India Hits Bangladesh Hard: Massive Import Ban Shuts Down Key Trade Routes

New Delhi (The Uttam Hindu): India has imposed a ban on the import of ready-made garments (RMG), processed food, and other goods from Bangladesh through land ports, with immediate effect. The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, issued a notification restricting the import of certain items such as ready-made garments and processed food from Bangladesh through land ports.

The DGFT stated in its notification, “However, such port restrictions will not apply to Bangladeshi goods in transit through India, but they will apply to goods destined for Nepal and Bhutan.”

According to the directive, “Import of all types of ready-made garments from Bangladesh will not be allowed through any land port, though it will be permitted only via Nhava Sheva and Kolkata seaports.” Other restrictions apply to the import of fruit-flavored and carbonated beverages, processed food items, cotton and cotton yarn waste, finished plastic and PVC products, and wooden furniture.

These goods will not be permitted through any Land Customs Station (LCS) or Integrated Check Post (ICP) in Assam, Meghalaya, Tripura, and Mizoram. Additionally, they are also not allowed through LCS Changrabandha and Phulbari in West Bengal.

The notification further states that the port restrictions do not apply to the import of fish, LPG, edible oil, and crushed stone from Bangladesh. Earlier in April, the Bangladesh government had imposed a ban on the import of yarn from India via land ports through a notification issued by its National Board of Revenue (NBR). In response to this decision by Bangladesh, India has taken this new step.

India has also discontinued the trans-shipment facility for Bangladesh. After China, India is Bangladesh’s second-largest trading partner. In the fiscal year 2022–23, bilateral trade between Bangladesh and India was approximately \$16 billion. According to industry data, Bangladesh imported goods worth around \$14 billion, while its exports to India were valued at \$2 billion.