India’s ports curbs may cost Dhaka $770 million

India’s move last week to restrict imports from Bangladesh via land routes may affect goods worth $770 million, covering nearly 42% of bilateral imports, trade policy think tank Global Trade Research Initiative (GTRI) said in a report.

The commerce ministry issued the curbs on Saturday on directions from the Directorate General of Foreign Trade (DGFT).

Key goods like garments, processed foods, and plastic items are now limited to select sea ports or barred from land routes entirely.

Goods from that country will only be allowed to enter via Kolkata and Nhava Sheva sea ports.

The move will severely limit Bangladesh’s most valuable export channel to India, GTRI said, adding that ready-made garment exports alone are valued at $618 million.

India’s restrictions on Bangladeshi goods are not an isolated decision but is the result of a cumulative decision by Bangladesh.

Last month, that country had banned Indian yarn imports through five major land ports, imposed tighter curbs on rice shipments, and imposed bans on dozens of Indian goods—from paper and tobacco to fish and powdered milk.

In addition, Dhaka introduced a transit fee of 1.8 taka per tonne per kilometre on Indian goods moving through its territory.

These cumulative actions, along with operational delays and tightened port inspections, have hampered Indian exporters and triggered calls for a calibrated response, GTRI said.

The think tank added that top global brands like H&M, Zara, Primark, Uniqlo, and Walmart source apparel from Bangladesh, some of which enter India.

Indian textile manufacturers have expressed concerns over the “uneven playing field,” compared with their Bangladeshi counterparts.

Indian textile manufacturers pay a 5% GST on locally sourced fabric. At the same time, Bangladeshi firms import duty-free fabric from China and receive export incentives for sales to India, giving them an estimated 10–15% price advantage.

The think tank said that Bangladesh’s shift from India and towards China coincides with political upheaval at home.

The fall of Sheikh Hasina’s pro-India government in mid-2024 and the rise of an interim administration under Muhammad Yunus have brought a willingness to align with Beijing.

GTRI added that Yunus’s visit to China in March 2025 yielded $2.1 billion in new investments and cooperation agreements. China’s involvement in sensitive infrastructure projects like the Teesta River development marks a growing strategic footprint, posing a direct challenge to India’s influence in the region.