India's recent imposition of restrictions on imports from Bangladesh through land ports is creating significant challenges for businesses and potentially rendering these ports "unprofitable and inactive". The restrictions, which took effect in May 2025, target key Bangladeshi exports, including ready-made garments, processed foods, plastics, and furniture. These items can now only enter India through the seaports of Kolkata and Nhava Sheva (near Mumbai).
This move is expected to disrupt trade flows and increase logistical challenges for Bangladeshi exporters. Approximately 93% of Bangladesh's exports to India previously moved through land ports. The new restrictions force exporters to reroute shipments through maritime channels, adding thousands of kilometers to shipping distances and increasing transit times. This leads to increased costs due to multiple transits and cargo re-handling, making exports to Northeast India economically unsustainable for many.
The cost of exporting a standard 20-foot container has surged from Tk 20,000-25,000 via land ports to Tk 1 lakh (approximately $910 USD) via seaports. This increase in expenses may force some businesses to scale back operations or shut down entirely.
Several factors may have contributed to India's decision. Some reports suggest the move is a response to Bangladesh's earlier restrictions on Indian yarn imports via land ports and other trade-related actions. These actions include imposing a transit fee on Indian goods moving through Bangladesh and increasing inspections on Indian goods. Some sources also cite controversial remarks made by Bangladesh's interim Chief Advisor Muhammad Yunus regarding India's northeastern states as a "landlocked region" during a visit to China.
The restrictions apply specifically to land customs stations (LCSs) and integrated check posts (ICPs) in Assam, Meghalaya, Tripura, and Mizoram, as well as Changrabandha and Fulbari in West Bengal. Certain essential goods, such as fish, liquefied petroleum gas (LPG), cooking oil, and crushed stone, are exempt from the restrictions. Goods transiting through India from Bangladesh to Nepal and Bhutan are also exempt. However, a more recent order in August 2025 imposed an immediate ban on the import of jute products through any land port on the India-Bangladesh border, further tightening trade.
The impact of these restrictions is expected to be significant. A report by the Global Trade Research Initiative (GTRI) estimates that the curbs will affect approximately $770 million worth of Bangladeshi goods, representing nearly 42% of total bilateral imports. While the long-term consequences remain to be seen, the immediate effect is a significant disruption to trade and increased costs for Bangladeshi exporters, raising concerns about the viability of land ports. Some stakeholders believe the Bangladesh government needs to address the issue through bilateral talks with India to mitigate the adverse effects. However, some reports indicate minimal impact at certain land ports like Banglabandha, which handle minimal trade volume with India.
