India has prevented Bangladesh from exporting ready-made garments through its land ports with immediate effect. The move follows Bangladesh’s move to allow Indian yarn exports through sea ports only. About 93% of Bangladesh’s export of garments to India is via land ports, which will now be diverted to sea ports in Kolkata and Nhava Sheva for necessary inspection.
The decision is viewed as a tit-for-tat action, as Bangladesh had earlier imposed such limitations on Indian exports of yarn through land ports. Indian authorities claim that Bangladesh has been engaging in cherry-picking of issues in trade, and India wishes to stop it. The limitation will be felt by Bangladesh’s exports, especially its garment sector, which depends heavily on Indian land ports.
The Government of India also has put restrictions on some Bangladeshi goods coming through specific land border posts in Tripura, Assam, Meghalaya, and Mizoram. Such goods are plastic, wooden furniture, juices, and cotton yarn. These goods can be produced locally within India, and the restrictions are to support the country’s domestic industry. Periodically, the list of restricted products will be reviewed.
The ruling is also viewed as reacting to remarks by Bangladesh’s interim government chief Muhammad Yunus, who characterized India’s northeast states as “landlocked” and opined that Bangladesh can provide Chinese manufacturing sector entry into the region. The statement was met with disapproval by Indian officials, such as Assam Chief Minister.
The decision is a change in India’s trade policy with Bangladesh, with India endeavouring to protect its interests and develop local manufacturing. The restrictions will be put in place at all Land Customs Stations (LCS) and Integrated Check Posts (ICP) at the border.
