Tougher checks await B’desh garments at Indian seaports
India imposes strict inspections on Bangladeshi garments at seaports in response to Dhaka's trade barriers, impacting exports amid rising tensions.
Bangladeshi readymade garments entering India through the two designated seaports from Saturday will also be subjected to rigorous inspections in retaliation to Dhaka adopting similar non-tariff barriers to curb Indian cotton yarn and rice imports, people aware of the development said on Sunday.
Land port restrictions and rigorous inspections at the two designated seaports will also help in curbing any possible dumping of cheaper Chinese goods through Bangladesh, they said, requesting anonymity. In a retaliatory move, New Delhi on Saturday restricted imports of key Bangladeshi goods only through Nhava Sheva and Kolkata seaports, closing all land ports with immediate effect.
New Delhi was forced to retaliate after Dhaka started imposing non-tariff barriers (NTBs) for Indian goods in Bangladesh under the new regime headed by Muhammad Yunus, they said. As a result of Dhaka’s actions, Indian exports to Bangladesh fell by 6.7% to $1.04 billion in February 2025 from $1.11 billion in February 2024. The figure fell sharply next month by about 15% to $973.3 million (March 2025) as compared to $1.14 billion in March 2024, one of them said, citing government data.
Before the Saturday decision, India allowed entry of Bangladeshi merchandise through all land and seaports without undue restrictions, a second person said. Dhaka, however, imposed port restrictions on Indian goods entering Bangladesh. Indian goods could not enter the neighbouring country particularly though land routes bordering northeastern states, hampering their economies, he added.
“The trigger points were Bangladesh’s April 13 action to stop Indian yarns entering through land ports, and its April 15 decision to stop Indian rice exports through the Hili and Benapole customs points,” he said. Due to land port restrictions by Bangladesh, the northeastern states suffered from lack of access to the Bangladesh market to sell locally manufactured goods, he added.
“Industrial growth in the northeastern states suffers a triple jeopardy due to imposition of unreasonably high and economically unviable transit charges by Bangladesh, denying in practice, access for the northeast to the Indian hinterland for its manufactured goods and sourcing inputs, notwithstanding bilateral transit agreements,” he said.
Experts expect the trade war to aggravate. “It doesn’t come as a surprise that port restrictions are being embraced as a non-tariff lever to shield our domestic manufacturing sector. In these times of global trade friction, one almost anticipates the deployment of such measures. The other measures which will likely be used in the near future are more focused Quality Control Orders (QCOs), the minimum import prices, the quota licenses – as nations seek to fortify their economic borders against the tide of potential dumping. It’s a predictable, albeit complex, response to the current global economic climate,” said Saurabh Agarwal, tax partner at consultancy firm EY.
Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), said that India responded to Dhaka’s trade barriers with the current dispensation at Bangladesh is tilting toward China. “India hits $770 million in Imports from Bangladesh with port restrictions,” he said, citing the government’s notification issued on Saturday.
He said the move will hit Bangladeshi garments the most, but will help local manufacturers. “Indian manufacturers have long expressed concern over the uneven playing field: they pay a 5% GST on locally sourced fabric, while Bangladeshi firms import fabric duty-free from China and receive export incentives for sales to India — giving them an estimated 10-15% price advantage,” he added.
Bangladesh’s de facto commerce minister Sheikh Bashir Uddin told reporters in Dhaka on Sunday that trade with India will continue in the interest of consumers and businesses of both countries.
“We have not yet received any official communication from the Indian side. Once we do, we will take appropriate steps. If any issues arise, both sides will work to resolve them through discussions,” he said, referring to India’s restrictions on imports from Bangladesh.
Bashir Uddin said the Bangladeshi side had only learnt about the matter from social media and media reports.
“Not everything we export is affected. A large portion of our exports come from the garment sector. Our main focus remains on achieving competitiveness. Trade is beneficial to both countries. India has a strong textile industry, yet they import our products based on our capabilities,” he said.
He expressed optimism that trade with India will continue as it is in the interest of consumers and producers on both sides.
