India has imposed port restrictions on certain imports from Bangladesh, effective immediately. The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, issued a notification outlining these restrictions.

The restrictions primarily target specific goods, including ready-made garments and processed food items. Ready-made garments can now only be imported through the Nhava Sheva and Kolkata seaports, effectively excluding land ports. Furthermore, a range of other goods, such as processed foods, plastics, and wooden furniture, face restrictions, as they will not be allowed entry through Land Customs Stations (LCS) and Integrated Check Posts (ICP) in several states.

However, the restrictions do not apply to Bangladeshi goods transiting through India destined for Nepal and Bhutan. This exemption ensures that trade between Bangladesh and these landlocked countries remains unaffected.

The move comes a little over a month after India ended a nearly five-year-old arrangement for trans-shipment of Bangladeshi export cargo to third countries via Indian airports and ports. India cited "congestion" as the reason for halting the transshipment facility.

These restrictions are perceived as a response to similar measures taken by Bangladesh, which had earlier restricted land imports of cotton yarn from India to protect its local industries from cheaper imports. Bangladesh's decision to restrict yarn imports came on the back of complaints by the country's textile millers of unfair competition from cheaper Indian yarn, as well as smuggling.

The impact of these restrictions could be significant, especially for Bangladesh's ready-made garment industry, which exports approximately $700 million worth of goods to India annually, with 93% of these exports occurring through land ports. The Confederation of Indian Textile Industry has stated that Bangladesh accounts for 45.9% of India's total cotton yarn exports, making it the largest export destination.

This recent development is the latest in a series of trade-related tensions between India and Bangladesh. In April 2025, India withdrew a transshipment facility that had allowed Bangladeshi exporters to ship merchandise to third countries via Indian ports, which reportedly cost Bangladeshi shippers an estimated Tk 20 billion.

Trade between India and Bangladesh was valued at $13 billion in the financial year 2023-2024, with India having a trade surplus of $9.2 billion. India's key exports to Bangladesh include textiles, refined petroleum, machinery, and electricity. Bangladesh primarily exports jute products, ready-made garments, and some agricultural commodities to India.

Despite these recent trade disputes, India and Bangladesh share strong historical and cultural ties, with India playing a crucial role in the formation of Bangladesh in 1971. Both nations are members of regional cooperative frameworks such as SAARC and BIMSTEC.