Monday, May 19, 2025

India's Restrictions on Bangladesh Imports May Backfire, Experts Warn

 

International Desk, May 19, 2025 : India has imposed stringent restrictions on the import of certain goods from Bangladesh through its land ports, a move that could harm its own economy, particularly in West Bengal. 

The decision, aimed at curbing the inflow of items like ready-made garments and processed food, may lead to job losses and disruptions in the transportation sector.

According to a report by Indian news outlet NDTV, citing PTI, the Indian Ministry of Commerce's directive bans the entry of specific Bangladeshi products through land ports, mandating the use of designated seaports like Nhava Sheva and Kolkata. Indian officials claim the move prioritizes "national interests," but experts warn it could negatively impact employment and logistics in border regions.
Kartik Chakraborty, a member of the Petrapole Clearing Agents Staff Welfare Association, highlighted the potential fallout. "Previously, 60-80 trucks carrying garments crossed daily during transshipment. Even after the transshipment ban, 20-30 trucks continued. This new restriction will halt that entirely, affecting drivers, helpers, and other logistics workers," he said.
The decision follows Bangladesh's reciprocal restrictions on certain Indian goods. A trade expert, speaking anonymously to NDTV, suggested that low-cost Bangladeshi garments flooding Indian markets have harmed local industries, sometimes amounting to "dumping." The expert also hinted at geopolitical motivations, possibly linked to evolving Dhaka-Islamabad ties, underscoring that national interests outweigh economic risks.
The new guidelines prohibit ready-made garments from entering via land ports, restricting imports to seaports. Other restricted items, including fruits, carbonated drinks, processed foods, cotton, plastics, and wooden furniture, are banned from land customs stations in Assam, Meghalaya, Tripura, Mizoram, and specific West Bengal stations like Changrabandha and Phulbari.
Importers are likely to face challenges, as sea routes take about two weeks compared to 3-4 days via land. This could discourage businesses from sourcing goods from Bangladesh, further straining bilateral.
AI/MR

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