The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, has announced significant port restrictions on the import of specific goods originating from Bangladesh into India.
The directive, formalised through Notification No. 07/2025-26 dated 17th May 2025, introduces a differentiated approach to import channels, potentially reshaping bilateral trade dynamics and supply chains. The most notable restriction pertains to all categories of ready-made garments from Bangladesh. These items will now exclusively be permitted entry into India via the seaports of Nhava Sheva, located near Mumbai, and Kolkata. This measure effectively prohibits the import of garments through any land port along the extensive India-Bangladesh border. Furthermore, a range of other commodities will face restricted entry points. Fruit and fruit-flavoured drinks, carbonated beverages, processed food items, cotton and cotton yarn waste, finished plastic and PVC goods (excluding essential industrial inputs like pigments, dyes, plasticisers, and granules for domestic manufacturing), and wooden furniture will no longer be allowed through Land Customs Stations (LCSs) or Integrated Check Posts (ICPs) situated in the northeastern states of Assam, Meghalaya, Tripura, and Mizoram. Additionally, this restriction extends to the LCSs of Changrabandha and Fulbari in West Bengal.
Interestingly, the notification explicitly carves out exemptions for certain essential goods. The import of fish, Liquefied Petroleum Gas (LPG), edible oil, and crushed stone from Bangladesh will not be subject to these new port restrictions, indicating a strategic prioritisation of these commodities in the trade relationship. The implications of these restrictions are manifold. For the ready-made garment sector in Bangladesh, a significant exporter to India, the shift towards sea-based logistics could entail increased transportation costs and longer transit times, potentially impacting their competitiveness in the Indian market. Businesses relying on land routes for speed and proximity might need to re-evaluate their supply chain strategies.
Similarly, the restrictions on processed food and other manufactured goods entering through the eastern land borders could disrupt established trade flows and affect local economies in the bordering Indian states that rely on this commerce. The rationale behind targeting these specific land ports and goods remains to be officially elucidated, but it could be linked to concerns around customs procedures, quality control, or the promotion of specific trade corridors. While the restrictions aim to regulate the flow of goods, the exemption for transit cargo destined for Nepal and Bhutan underscores India’s commitment to facilitating regional trade and connectivity within the South Asian subcontinent. This distinction highlights a nuanced approach to border management, differentiating between goods intended for the domestic market and those moving through India to neighbouring countries.
The immediate implementation of these directives necessitates swift adaptation from businesses on both sides of the border. Stakeholders will be closely monitoring the long-term impact of these port restrictions on trade volumes, logistics networks, and the overall economic relationship between India and Bangladesh. The focus will likely shift towards optimising sea-based supply chains and understanding the broader strategic objectives underpinning these regulatory changes.
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