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India Enforces Seaport-Only Entry for Key Bangladeshi Exports in Trade Dispute

New restrictions impact $770 million in annual imports, including ready-made garments, as India responds to Bangladesh's trade barriers.

Representational Image of Indian and Bangladesh flag

Overview

  • India has barred Bangladeshi ready-made garments, plastics, furniture, and other goods from entering via land ports, restricting them to Kolkata and Nhava Sheva seaports.
  • The restrictions affect $770 million in annual Bangladeshi exports to India, with ready-made garments valued at $618 million being the most impacted.
  • India's measures are a reciprocal response to Bangladesh's curbs on Indian yarn, rice, and increased transit fees for Indian cargo.
  • The decision comes five weeks after India ended a transshipment arrangement for Bangladeshi exports via Indian airports and ports, citing congestion and security concerns.
  • Bangladesh has protested diplomatically, but no formal negotiations have yet begun to resolve the trade tensions.