The order was released by the Union Ministry of Commerce and Industry.
New Delhi: According to Global Trade Research Initiative (GTRI), India’s counter move to ban several imports from Bangladesh will hit the country with a big amount of $770 million, about 42% of bilateral imports. GTRI says that India’s latest trade restrictions are far from arbitrary. “The restrictions look like India’s response to Dhaka restricting imports from India on a large number of items and diplomatic pivot towards China,” said the GTRI.
The order to ban these imports was released by the Union Ministry of Commerce and Industry on May 17. This move marks a decisive shift in trade policy, with clear geopolitical undertones. The ban has been placed on readymade garments, processed food, and plastic products among major categories.
Talking about garments which are valued at $618 million annually, can now only pass through the Kolkata and Nhava Sheva seaports, effectively cutting off Bangladesh’s access to critical land trade corridors. This decree follows recommendations from the Directorate General of Foreign Trade (DGFT) signalling a calculated response to recent diplomatic and trade moves by Dhaka which placed similar restrictions on certain Indian products last month.
Bangladesh has escalated trade curbs on Indian goods since late 2024. It banned Indian yarn imports via five key land ports in April 2025 while also tightening controls on rice exports and stopping many other Indian products, including tobacco, fish, and powdered milk.
The snowballing result of these acts has disturbed Indian exports as delays at Bangladeshi ports and heightened inspections have only deepened the frustrations of Indian exporters.
On May 17, the Directorate General of Foreign Trade (DGFT) formally notified the new port restrictions after New Delhi revoked a key trans-shipment facility for Bangladesh. The facility, granted in 2020, had enabled Dhaka to route exports to Europe and the Middle East via Indian infrastructure, including the Delhi airport. That favour was withdrawn on April 9 for all destinations except Nepal and Bhutan.
Mohammad Yunus, the chief advisor of Bangladesh’s interim government had during a visit to China in March said in Beijing that India’s northeastern region is landlocked and Bangladesh is the sole guardian of the ocean for the entire area.
This unbecoming and hostile statement aggravated tensions between the two countries.
