Bangladesh and India Face Trade Tensions Amid Reciprocal Import Restrictions

Tensions rise between Bangladesh and India over reciprocal import curbs, impacting $770 million in bilateral trade. Bangladesh wants dialogue to resolve trade issues affecting goods like garments and processed foods. Both nations seek cooperation despite India's recent restrictions and Bangladesh's previous bans on Indian products.


Devdiscourse News Desk | Updated: 19-05-2025 09:56 IST | Created: 19-05-2025 09:56 IST
Bangladesh and India Face Trade Tensions Amid Reciprocal Import Restrictions
Representative Image. Image Credit: ANI
  • Country:
  • Bangladesh

The trade tensions between Bangladesh and India have escalated following India's recent curbs on Bangladeshi exports via land ports. Bangladesh's interim government, led by Nobel Laureate Muhammad Yunus, has expressed its intent to resolve all trade-related issues through dialogue with India.

An adviser from Bangladesh's interim government highlighted that these restrictions are also a sort of trade management. India had recently halted imports of several Bangladeshi goods, including ready-made garments, fruit-flavored and carbonated drinks, and confectioneries. Conversely, Bangladesh had previously banned the import of yarn from India via the land route.

The restrictions are part of a broader pattern of mutual trade limitations, which mirror Bangladesh's decision to impose transit fees on Indian cargo. This has led to goods worth nearly USD 770 million being rerouted to seaports, impacting around 42% of India's total imports from Bangladesh, as estimated by the Global Trade Research Initiative.

(With inputs from agencies.)

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