NEW DELHI: India's recent import restrictions on Bangladeshi goods have sparked a broader conversation about the future of bilateral trade, with officials and experts stressing that Bangladesh should not assume India’s Northeast as a captive market for its exports.
On May 17, the government imposed curbs on imports worth $770 million from Bangladesh, impacting nearly 42% of the total import volume. The restrictions, affecting garments, processed foods, and plastics, barred many goods from land ports and limited them to just two seaports: Kolkata and Nhava Sheva.
For Bangladesh, this is a major blow. Apparel exports alone, valued at $618 million, now face longer routes, higher shipping costs, and delayed delivery times. Petrapole land port accounted for over 75% of apparel imports in 2024–25, according to official data, PTI reported.
“This move will help Indian MSMEs in the textile sector regain competitiveness,” said Ajay Srivastava, founder of Global Trade Research Initiative (GTRI). He pointed out that Bangladeshi firms enjoyed unfair pricing advantages thanks to duty-free Chinese fabrics and export subsidies, giving them a 10–15% edge.
Apparel Export Promotion Council (AEPC) Vice Chairman A Sakthivel agreed: “It was a long-standing demand from domestic exporters. This is the right step.”
India’s measures come amid growing unease over Bangladesh’s own trade practices. Dhaka recently restricted Indian imports like yarn and rice and introduced a transit fee on Indian cargo, which New Delhi sees as a violation of earlier understandings.
“India will pursue reciprocal trade, not one-sided terms,” a senior source said. “Bangladesh must realise it cannot cherry-pick trade benefits without giving back.”
Still, experts caution against a breakdown in ties. “As the larger neighbour, India must lead with maturity,” Srivastava said. “Trade shouldn’t be weaponised. There’s still room to rebuild trust through dialogue and economic cooperation.”
AEPC Secretary General Mithileshwar Thakur noted the shift to sea ports could strain small Bangladeshi exporters. “Sea shipping is costlier and slower. This could hurt their ability to meet demand from Indian retailers.”
On May 17, the government imposed curbs on imports worth $770 million from Bangladesh, impacting nearly 42% of the total import volume. The restrictions, affecting garments, processed foods, and plastics, barred many goods from land ports and limited them to just two seaports: Kolkata and Nhava Sheva.
For Bangladesh, this is a major blow. Apparel exports alone, valued at $618 million, now face longer routes, higher shipping costs, and delayed delivery times. Petrapole land port accounted for over 75% of apparel imports in 2024–25, according to official data, PTI reported.
“This move will help Indian MSMEs in the textile sector regain competitiveness,” said Ajay Srivastava, founder of Global Trade Research Initiative (GTRI). He pointed out that Bangladeshi firms enjoyed unfair pricing advantages thanks to duty-free Chinese fabrics and export subsidies, giving them a 10–15% edge.
Apparel Export Promotion Council (AEPC) Vice Chairman A Sakthivel agreed: “It was a long-standing demand from domestic exporters. This is the right step.”
India’s measures come amid growing unease over Bangladesh’s own trade practices. Dhaka recently restricted Indian imports like yarn and rice and introduced a transit fee on Indian cargo, which New Delhi sees as a violation of earlier understandings.
“India will pursue reciprocal trade, not one-sided terms,” a senior source said. “Bangladesh must realise it cannot cherry-pick trade benefits without giving back.”
Still, experts caution against a breakdown in ties. “As the larger neighbour, India must lead with maturity,” Srivastava said. “Trade shouldn’t be weaponised. There’s still room to rebuild trust through dialogue and economic cooperation.”
AEPC Secretary General Mithileshwar Thakur noted the shift to sea ports could strain small Bangladeshi exporters. “Sea shipping is costlier and slower. This could hurt their ability to meet demand from Indian retailers.”
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