India has imposed significant restrictions on imports from Bangladesh, targeting nearly 42% of bilateral imports-valued at approximately $770 million-as a direct response to escalating diplomatic and trade tensions following Dhaka’s growing alignment with China.
The new measures, announced in May 2025, limit key Bangladeshi exports such as ready-made garments, processed foods, and plastic goods to just two Indian seaports: Kolkata and Nhava Sheva.
This effectively bans these goods from entering India via the land routes that have historically been crucial for cross-border trade, particularly with India’s north-eastern states.The Global Trade Research Initiative (GTRI) report underscores that these restrictions are not isolated economic measures but are retaliatory in nature, responding to Bangladesh’s recent trade barriers against Indian exports and a marked diplomatic shift towards China.
Since late 2024, Bangladesh has imposed a series of restrictions on Indian goods, including bans on yarn, rice, paper, tobacco, fish, and powdered milk, as well as the introduction of a transit fee on Indian goods passing through its territory. These cumulative actions have strained bilateral trade, with Indian exporters facing operational delays and tighter inspections.
