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Bangladesh proposes talks after India limits land route imports

India restricts several Bangladeshi goods at land ports, prompting Dhaka’s interim government to call for discussions, as trade tensions rise over reciprocal curbs and shifting bilateral policies.

EPN Desk 19 May 2025 09:10

Bangladesh proposes talks after India limits land route imports

India has imposed new restrictions on imports from Bangladesh through land ports, triggering a response from Dhaka’s interim government, which has expressed its willingness to resolve all trade-related issues through dialogue.

The curbs, announced by India’s Ministry of Commerce and Industry, restrict the entry of goods such as ready-made garments (RMG), fruit-flavored and carbonated drinks, baked goods, snacks, chips, confectionery, cotton and cotton yarn waste, plastic and PVC finished goods, and wooden furniture from Bangladesh via land routes.

These items can now only be imported through Nhava Sheva and Kolkata seaports.

In response, Sheikh Bashiruddin, Commerce Adviser to the Bangladesh interim government led by Nobel Laureate Muhammad Yunus, said, “We do not know anything officially about India's steps yet. We will be able to take action after we know officially. If any problems arise, both sides will discuss and try to resolve them.”

He added, “We have learned from social media and news that they (India) have taken some decisions regarding land ports, especially Akhaura and Dawki ports, and some border areas. Our main goal is to achieve competitiveness. This is a profitable matter for both countries.”

The restrictions come after Bangladesh imposed curbs on Indian yarn imports and introduced transit fees on Indian cargo—moves that have led to what officials and analysts describe as a growing strain in bilateral trade ties.

"We think that India itself is a rich country in the textile or clothing industry. Even then, when these products are exported from our country, it is based on our capabilities. We are not affected by trans-shipment. We have solved this problem on our own using our capabilities," Bashiruddin said.

He also noted that trade restrictions are not unusual.

“Since we are a geographically connected country, our competitiveness, transportation costs, and other factors are fixed. In this regard, we impose restrictions on the import of our agricultural products at different times; India also does. This is a process of trade management, and we are working on that. If a problem arises or develops there, both parties will discuss and try to resolve it,” he added.

"I believe in liberal trade. Trade is important to me. I see no other path than trade inclusion to empower the business and consumers of my country," he added.

According to the Global Trade Research Initiative (GTRI), India’s latest move could impact Bangladeshi exports worth USD 770 million—roughly 42% of total bilateral imports.

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