India Restricts Entry of Several Bangladeshi Consumer Goods Through Land Transit Points in Northeast

New Delhi:In a move to significantly hit Bangladesh's trade with India, the Centre on Saturday imposed port restrictions on the import of a range of consumer items through land transit posts in the northeast. It has also decided to allow entry of ready-made garments from Bangladesh only through Kolkata and Nhava Sheva seaports.

The government also said that such port restriction wouldn't apply to Bangladesh goods transiting through India, but destined for Nepal and Bhutan. The new restrictions have been imposed with immediate effect. The move of the government is widely seen as a retaliatory measure, follows Dhaka's decision to close its land ports to Indian yarn exports. However, the government also clarified that the port restrictions do not apply to the import of fish, LPG, edible oil, and crushed stone from Bangladesh.

In a notification, the directorate general of foreign trade (DGFT), a wing of ministry of commerce and industry said, “Import of all kinds of readymade garments from Bangladesh shall not be allowed from any land port, however, it is allowed only through Nhava Sheva and Kolkata seaports. However, such said port restriction will not apply to Bangladesh goods transiting through India but destined for Nepal and Bhutan."

"Other items such as plastics, wooden furniture, processed food, fruit-flavored and carbonated drinks, cotton and cotton yarn waste are also barred from entering India through land ports in the northeastern states of Assam, Meghalaya, Tripura, Mizoram, and border points in West Bengal, including Phulbari and Changrabandha. Goods such as fish, LPG, edible oil, and crushed stone remain exempt from these restrictions," the DGFT said.

As Bangladesh is one of the world’s largest exporters of ready-made garments, with exports valued at approximately $38 billion in 2023, the new restrictions is expected to significantly disrupt this flow, hitting local manufacturers and exporters who rely on Bangladesh as a market.

As per the latest reports, annual ready made garments exports to India alone are estimated around $700 million, with about 93 per cent of these shipments traditionally entering via land ports in India’s northeast. However, India’s northeastern region depends heavily on these land transit points for cross-border trade, with 11 major land transit points spread across Assam, Meghalaya, and Tripura.