Overview

• India’s May 17 directive restricts Bangladeshi readymade garment imports to only Nhava Sheva and Kolkata seaports, barring entry through land ports.
• The restrictions follow Bangladesh’s earlier bans on Indian yarn and rice imports, escalating a tit-for-tat trade dispute between the two neighbors.
• Indian MSME garment manufacturers welcome the move, citing reduced competition from low-cost Bangladeshi imports benefiting from SAFTA and export subsidies.
• FMCG companies report no disruption from the restrictions, while Indian infrastructure projects in Bangladesh, including railway collaborations, face potential delays due to logistical challenges.
• Bangladesh has lodged diplomatic protests, criticizing the lack of prior notification and warning of broader impacts on regional trade and transit ties.