Trade Tensions Rise: India Restricts Bangladeshi Imports through Land Ports

India has tightened its trade policies by limiting the import of Bangladeshi goods solely to two sea ports—Kolkata and Nhava Sheva—while banning their entry through northeastern land transit posts. This measure is likely to impact Bangladeshi exports, especially in the ready-made garments sector.

The decision comes shortly after India terminated a trans-shipment arrangement for Bangladeshi cargo, influencing the trade dynamics between the two nations. It appears as a retort to Bangladesh's restrictions on Indian exports via land transit points in the northeast.

The move follows a series of strained diplomatic interactions, exacerbated by former Prime Minister Sheikh Hasina's flight from Dhaka amidst political unrest. The restrictions aim to foster India's self-reliance and bolster the northeastern states' economies.

(With inputs from agencies.)