India imposes a ban on imports worth USD 770 million from Bangladesh.

In a significant move impacting bilateral trade, India’s Ministry of Commerce and Industry has imposed immediate restrictions on the import of various goods from Bangladesh via land ports, following a directive issued by the Directorate General of Foreign Trade (DGFT). According to a report by the Global Trade Research Initiative (GTRI), the ban will affect goods worth approximately USD 770 million, representing nearly 42% of total bilateral imports.

Key items such as garments, processed food products, and plastic goods will now be restricted to entry only through designated seaports or completely banned via land routes. As per the new policy, Bangladeshi garments worth USD 618 million annually will be allowed entry into India through only two specified seaports, significantly impacting Bangladesh’s most profitable export channel to India.

The GTRI report suggests that the move may be a response to a series of restrictions Bangladesh has placed on Indian exports since late 2024. These include bans on yarn imports, strict limitations on rice shipments, and curbs on goods such as paper, tobacco, fish, and milk powder. Furthermore, Bangladesh has imposed a transit fee of 1.8% per ton on Indian goods passing through its territory.

The restrictions are also being viewed as a reaction to growing diplomatic tensions between the two nations. A controversial remark by Bangladesh's interim Chief Advisor Mohammad Yunus — who referred to India’s northeastern states as landlocked and lacking sea access — has reportedly strained ties. Additionally, Bangladesh’s increasing alignment with China, marked by a $2.1 billion investment deal during Yunus's visit to Beijing in March 2025, has raised strategic concerns in India.