India has imposed stringent restrictions on the entry of Bangladeshi goods through its northeastern land ports, effectively halting the export of various products, including ready-made garments, from Bangladesh to the country.
According to a report by ANI News on Saturday (May 17th), the new restrictions bar the entry of Bangladeshi goods through the land ports of Fulbari and Changrabandha in West Bengal, as well as those in Assam, Meghalaya, Tripura, and Mizoram. Notably, 93 percent of Bangladesh's exports to India pass through these very ports.
Under the new directive, these goods can now only be transported through the Kolkata port in West Bengal or the Nhava Sheva port in Maharashtra.
Indian authorities claim that while Bangladesh has long enjoyed unilateral access to the Indian market, similar reciprocal access has not been granted to Indian products.
An official from the Indian Ministry of Commerce stated that this decision aims to restore balance in trade relations with Bangladesh. "There must be reciprocity; unilateral concessions will no longer be tolerated," the official asserted.
Furthermore, India has alleged that Bangladesh charges a transit fee of ₹1.8 per ton per kilometer, compared to its internal rate of ₹0.8 per ton per kilometer. This, India claims, is severely impacting the industrial sector in its northeastern region.
This ban will impede Bangladesh's export of several products to India, including ready-made garments, plastics, melamine, furniture, juice, soft drinks, bakery items, and processed foods.
The ready-made garment sector, which annually exports approximately $740 million worth of goods to India, is expected to bear the brunt of this decision.
Indian trade analysts suggest that this development poses a challenge to the long-standing amicable trade relations between India and Bangladesh.
While it represents a significant financial setback for Bangladesh, it could present a golden opportunity for Indian domestic producers to capture a larger share of the market.
