India has widened its import ban on Bangladeshi goods, adding more jute products to the restricted list amid worsening trade relations. The ban applies to all land borders, forcing imports through select seaports and impacting $770 million worth of trade, including readymade garments and processed foods.
In a escalation of trade restrictions, India has expanded its ban on imports from Bangladesh, adding several jute-based products to the growing list of items prohibited from entering through land borders. The move, which comes amid deteriorating bilateral relations, is expected to impact a substantial portion of Bangladesh’s export revenue from India.
According to a fresh notification issued by the Director General of Foreign Trade (DGFT), the newly banned items include bleached and unbleached woven fabrics made of jute or other textile bast fibres, twine, cordage, and rope made of jute, as well as sacks and bags produced from jute. The restrictions apply to all Land Customs Stations (LCS) and Integrated Check Posts (ICP) in Assam, Meghalaya, Tripura, and Mizoram, as well as West Bengal’s LCS Changrabandha and Fulbari.
Under the updated rules, these goods can now only enter India through the Nhava Sheva Seaport in Navi Mumbai. The order further clarifies that the ban does not extend to goods destined for Nepal or Bhutan, but re-export of these banned items from those countries to India is strictly prohibited.
Part of a Series of Trade Restrictions
This latest measure follows earlier notifications that have progressively tightened import channels for Bangladeshi goods. On June 27, India regulated the import of several other jute and flax products, including raw or retted jute, flax tow and waste, single yarn of jute, and woven fabrics of flax. These too were restricted to certain seaports, making land border trade increasingly unviable.
On May 17, India took another major step by banning the import of readymade garments and processed food items from Bangladesh through land ports. This decision redirected approximately $770 million (₹6,600 crore) worth of goods to more limited seaport routes. Of this amount, $618 million (₹5,290 crore) came from readymade garments alone — Bangladesh’s largest export category to India. The goods can now only be imported via Nhava Sheva and Kolkata seaports.
Other items barred from land port entry include fruit-flavoured carbonated drinks, cotton and cotton yarn waste, plastic and PVC finished goods, wooden furniture, and other processed food products, valued at approximately $153 million (₹1,310 crore).
Retaliatory Measures and Trade Context
Analysts note that these measures follow Bangladesh’s April ban on the import of Indian yarn via land ports, announced by the country’s National Board of Revenue. India’s recent actions also come after it terminated the trans-shipment facility that allowed Bangladesh to use Indian seaports and airports to export goods to third countries — a move seen as another sign of growing strain in bilateral ties.
India is Bangladesh’s second-largest trading partner after China. In FY 2022–23, total trade between the two countries stood at approximately $16 billion. Bangladesh imported about $14 billion worth of goods from India, while its exports to India were around $2 billion, according to industry data.
Impact on Border Economies
Trade experts warn that the bans could hit local economies in border states like Tripura, Meghalaya, Assam, and West Bengal, where cross-border commerce has been a crucial livelihood source. The restrictions are expected to push up transportation costs, as goods that once moved through nearby land ports must now be shipped through distant seaports.
Indian importers dealing in jute products and readymade garments from Bangladesh are also likely to face delays and increased logistics expenses, potentially leading to higher retail prices for certain goods in Indian markets.
Diplomatic Implications
The expanding trade barriers highlight the ongoing friction between India and Bangladesh, despite longstanding economic and cultural ties. While officials have not framed the bans as retaliatory, the sequence of measures taken by both sides since April suggests that a trade dispute is brewing.
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Economic observers say that unless high-level diplomatic dialogue resumes soon, the restrictions could lead to a prolonged period of reduced bilateral trade, with ripple effects across various sectors.
