The Indian Government on Saturday announced that it has shut down access to land ports for select goods from Bangladesh. According to the notification issued by the Ministry of Commerce & Industry, trade between the two countries has been limited to Kolkata and Mumbai sea ports. Trade through land ports in Northeast India has been barred.
The order by the Ministry of Commerce & Industry has gone into effect immediately. The order is being interpreted as retaliatory action by India amidst tensions with its eastern neighbour since Sheikh Hasina was ousted from power. Relations between the two countries have worsened considerably amid rise in anti-India sentiments in Bangladesh.
How the denial of land ports will affect Bangladesh Industry
India has barred the entry of 7 category of imports from Bangladesh through land ports. The barred categories include food and apparel, two of Bangladesh’s largest exports. Shipping the products through the Chittagong port will double transportation costs and cause delays in deliveries, which may result in cancellations.
Kartik Chakraborty, member of a staff association at the Petrapole Land Port, said, “Around 20-30 trucks, carrying finished premium garments, used to come daily even after India banned third-country transhipment. The latest order will completely stop such movement via land ports. When transhipment was allowed, 60-80 truckloads of garments were entering India.”
The Petrapole Land Port alone accounted for more than 75% of garment imports in 2024-25, per official statistics. Experts have stated that shipping through sea is costlier with a higher turnaround time. It could impact Bangladeshi exporters’ ability to meet Indian demands.
The Global Trade Research Initiative (GTRI) has stated that India’s trade restrictions will cost Bangladesh $770 million and impact nearly 42% of bilateral imports. The move will also cut off its Garment Industry’s access to key land ports, which is alone valued at $618 million annually.
Why did India impose the trade restrictions?
An unnamed trade expert was quoted in media reports saying that goods were being “dumped into the market by Bangladeshi exporters” at low prices. The expert further stated, “The move by the Centre may be strategic, possibly linked to national interest and recent geopolitical developments, including Dhaka’s ties with Islamabad. The national interest is more important than the potential economic fallout.”
GTRI’s founder Ajay Shrivastava said that “This move will help Indian MSMEs in the textile sector regain competitiveness.” A Sakthivel, Vice Chairman of Apparel Export promotion Council (APEC), revealed that it was a long standing demand from domestic exporters.
Earlier, Bangladesh had restricted the import of Indian yarn and rice and introduced a transit fee on cargo from India. The move by the Indian Ministry of Commerce & Industry is an attempt to level the playing field. From a geopolitical perspective, Bangladesh has been making concerning moves that could threaten Indian National Security.
Apart from the hue and cry about India’s Chicken’s Neck, the Jamaat-e-Islami recently sought support from China to establish a Rohingya majority independent Arakan State by carving it out from Myanmar. The Jamaat-e-Islami is widely believed to have the support from the United States and its latest demand is being seen as an attempt to ‘box India in’ from the East.
