India tightens trade rules, blocking key Bangladesh imports at land borders
DHAKA, May 18 — India's commerce ministry announced restrictions on some imports from Bangladesh via its land borders, prompting fears for the South Asian country's export-reliant economy.
Relations between the two countries have deteriorated after former Bangladeshi prime minister Sheikh Hasina — a long-term New Delhi ally — was ousted last year, and fled to India where she is currently living in self-imposed exile.
New Delhi announced late yesterday that ready-made garments from Bangladesh cannot be imported through land borders, while some other goods — including cotton, processed foods and wooden furniture — have been barred from at least six entry points in northeast India.
The announcement came a month after Bangladesh banned yarn imports from New Delhi through the same land routes.
The latest move is a 'big threat', Bangladeshi conglomerate Pran-RFL Group, which exports around US$60 million (RM257 million) of goods annually to India, told AFP.
'India is the largest market for Pran-RFL Group's processed foods, plastic products, furniture, and PVC-finished goods,' director Kamruzzaman Kamal said.
'With the latest restrictions, almost every category of our products are getting affected. This is a big threat for the company and the country as well,' Kamal said, urging a bilateral solution with India.
The textile industry would be temporarily affected by the move, said Rakibul Alam Chowdhury of the Bangladesh Garment Manufacturers and Exporters Association.
Bangladesh Knitwear Manufacturers and Exporters Association president Mohammad Hatem also denounced the tit-for-tat move by New Delhi, adding that border trade would 'face a blow'.
However, he believed that garment exporters 'will be able to cover up the impact'.
The government in Dhaka told AFP it had not been officially informed of the latest restrictions.
'We haven't received any official copy of notification. Once we get the documents and then we can come up with our decision after going through it,' said Ministry of Commerce advisor Sheikh Bashir Uddin.
Bangladesh imported around US$9 billion worth of goods from India in the last 10 months of the 2024 financial year, while exports to India stood at US$1.51 billion, according to Bangladesh Bank and Export Promotion Bureau data.
At the start of April, India cancelled a 2020 transshipment deal that allowed Bangladesh to export cargo to third countries via Indian land borders. — AFP
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