India has imposed sweeping restrictions on imports from Bangladesh via land ports, disrupting cross-border supply chains and raising costs for Indian importers and Bangladeshi exporters.
According to a directive from India’s Directorate General of Foreign Trade (DGFT) issued on May 17, garments—the top Bangladeshi export to India—must now enter only through Kolkata or Nhava Sheva seaports. Previously, about 93% of Bangladesh’s $700 million apparel exports to India used land routes. The restrictions extend to a range of products including fruits, processed foods, plastic goods, wooden furniture, cotton yarn waste, and beverages. These items are no longer permitted entry through land ports in Assam, Meghalaya, Tripura, Mizoram, and parts of West Bengal. Exceptions have been made for LPG, fish, edible oils, and crushed stone. Exporters say the new rules function as non-tariff barriers and could severely impact trade. “Now that shipments must go through sea ports, lead times will increase significantly, which in turn will raise costs for Indian importers,” said Anwar-Ul-Alam Chowdhury Parvez, former president of the Bangladesh Garment Manufacturers and Exporters Association. RFL Group’s MD, RN Paul, said the decision caught exporters off guard. “We weren’t informed in advance. Plastic granules and confectioneries form a big part of our exports. This will disrupt monthly revenues and strain supply chains,” he said, noting that at least 20 Bangladeshi firms could be affected.
Industry leaders warn that the decision undermines long-established logistics, particularly in India’s northeast, where Bangladeshi products dominate market shelves. Mohammad Hatem of the Knitwear Manufacturers Association said Indian buyers relying on just-in-time deliveries will be affected more than exporters. Furniture exporters echoed similar concerns. “Policymakers must intervene. This could hurt bilateral trade,” said Hatil Furniture’s Selim H Rahman. The move follows India’s April suspension of transshipment facilities for Bangladeshi cargo destined for third countries via Indian land borders. In a possible tit-for-tat, Bangladesh’s National Board of Revenue also blocked yarn imports from India through major land ports last month. Experts argue the measures risk damaging regional economic integration. “Restricting land ports raises trade costs and creates uncertainty,” said Selim Raihan of the South Asian Network on Economic Modeling. “I hope these non-tariff barriers are reviewed to preserve bilateral trust.”
Economist Mohammad Abdur Razzaque called the developments “unfortunate,” warning they mark a retreat from trade facilitation. “For neighbours, land ports should be vital for mutual gains—not flashpoints for disruption,” he said.
