Bangladesh’s interim government, led by Nobel Laureate Muhammad Yunus, has expressed its willingness to engage in dialogue with India to resolve the recent surge in bilateral trade tensions following India’s imposition of new restrictions on Bangladeshi exports via land ports. These developments mark a significant shift from the previously cooperative trade relations between the two neighbouring countries.

India’s Ministry of Commerce and Industry, acting on a directive from the Directorate General of Foreign Trade (DGFT), recently restricted the import of several categories of Bangladeshi goods through land routes.

The affected items include ready-made garments (RMG), fruit and fruit-flavoured carbonated drinks, baked goods, snacks, chips, confectionery, cotton and cotton yarn waste, plastic and PVC finished goods, and wooden furniture. Under the new rules, these products can now only enter India through the seaports of Nhava Sheva and Kolkata, with land border points-especially those in the northeastern states and West Bengal-effectively closed to these imports.

The restrictions are widely seen as a retaliatory response to Bangladesh’s earlier trade curbs on Indian goods. Since April 2025, Bangladesh had banned the import of Indian yarn through major land ports, imposed stricter curbs on rice shipments, and banned paper, tobacco, fish, and powdered milk imports from India. Additionally, Dhaka introduced a transit fee of 1.8 taka per tonne per kilometre on Indian cargo passing through Bangladesh.

According to the Global Trade Research Initiative (GTRI), India’s new restrictions will impact goods worth approximately USD 770 million, accounting for nearly 42% of total Bangladeshi exports to India.

Bangladeshi exporters are concerned that these measures will lead to delays, higher costs, and disruptions in trade, particularly for key sectors such as garments and processed foods. Industry representatives warn that the added logistical hurdles-especially the need to reroute exports through distant seaports-will erode competitiveness and reduce export volumes.

Despite these challenges, Bangladesh’s Commerce Adviser, Sheikh Bashir Uddin, has emphasized the country’s commitment to maintaining open channels of communication with India. He noted that while the government is still awaiting official notification from India, any issues that arise will be addressed through bilateral discussions. He also highlighted the mutual benefits of trade and expressed optimism that both sides would work collaboratively to resolve disputes in the interest of consumers and producers in both countries.

Bashir Uddin further stated that Bangladesh’s main goal is to achieve competitiveness and that the country’s strong garment industry remains resilient, even as India itself is a major textile producer. He underscored the importance of liberal trade and trade inclusion as essential for empowering businesses and consumers in Bangladesh.

The current escalation in trade restrictions is rooted in reciprocal measures taken by both countries. Bangladesh’s interim government has signalled its readiness to engage in dialogue to resolve the issues, reaffirming its belief in the value of open trade and cooperation with India.

Both sides appear to recognize the broader economic stakes and the need for a negotiated solution to prevent further disruption to bilateral and regional trade.

Based On ANI Report