Amid the ongoing tensions India has imposed new port restrictions on Bangladeshi imports, restricting goods worth over $770 million annually. This amounts to about 42% of India’s total imports from Bangladesh.
According to data from the Observatory of Economic Complexity (OEC), India exported goods worth $11.3 billion to Bangladesh in 2023. In the same year, India imported goods worth $1.89 billion from Bangladesh.
Ready-made garments could be the worst hit
India is Bangladesh’s 7th largest import partner out of 138 countries. Major imports from Bangladesh to India include ready-made garments, textiles, knitwear, processed food items, cotton yarn waste, jute, and more.
According to the Global Trade Research Initiative (GTRI), ready-made garments are the most affected item. Imports of ready-made garments, valued at $618 million, now face strict routing through only two Indian seaports—Nhava Sheva and Kolkata. All land routes for garment imports have been shut down. This cutoff may severely limit Bangladesh’s most valuable export channel to India.
Reason behind India imposing trade barriers
India’s port restrictions are widely being viewed as a response to Bangladesh’s recent curbs on Indian yarn, rice, and other goods. Additionally, the imposition of a transit fee of 1.8 taka per tonne per kilometre on Indian cargo moving through its territory marked a shift from previously cooperative trade relations.
Indian authorities have also highlighted Bangladesh’s strategic shift towards China. The fall of Sheikh Hasina’s pro-India government in 2024 and the rise of an interim government led by Muhammad Yunus have led to closer ties with China. Yunus visited China in March 2025 and secured major investments and infrastructure deals, including work on the Teesta River—a sensitive project for India.