India has imposed port restrictions on imports of certain goods from Bangladesh, effective Saturday, May 17, 2025. The restrictions affect a range of consumer items, including ready-made garments, processed food items, plastics, and wooden furniture. This move is expected to significantly impact Bangladesh's trade with India.

Key Changes and Restrictions

• Ready-Made Garments (RMG): Import of all types of ready-made garments from Bangladesh will only be allowed through Nhava Sheva and Kolkata seaports. Land ports will no longer be permitted for these imports.
• Other Goods: Several other categories of goods will not be allowed to enter India through land customs stations (LCSs) and integrated check posts (ICPs) in the northeastern states of Meghalaya, Assam, Tripura, and Mizoram, as well as Phulbari and Changrabandha in West Bengal. These goods include:
  • Processed food items (baked goods, snacks, chips, confectionery)
  • Fruit/fruit flavored and carbonated drinks
  • Cotton and cotton yarn waste
  • Plastic and PVC finished goods (except pigments, dyes, plasticisers, and granules that form input for own industries)
  • Wooden furniture

Exemptions

The restrictions do not apply to:

• Bangladeshi goods transiting through India but destined for Nepal and Bhutan
• Essential commodities such as fish, LPG, edible oil, and crushed stone

Reasons for the Restrictions

While the Indian government has not explicitly stated the reasons for these restrictions, they come amid increasing strain in the overall relations between India and Bangladesh. Some reports suggest the move is a response to Dhaka's decision to close its land ports to Indian yarn exports. Other reports indicate that the restrictions are in response to restrictions adopted by Bangladesh. There have been tensions between India and Bangladesh since August last year.

Potential Impact

The restrictions are expected to have a significant impact on Bangladesh's trade with India. A substantial portion of Bangladesh's RMG exports to India, valued at approximately $700 million annually, are transported through land ports. The new measures will force exporters to reroute their shipments through Kolkata and Nhava Sheva seaports, potentially increasing costs and transit times. The restrictions could also affect businesses and consumers in India's northeastern states, who rely on imports of these goods from Bangladesh.