India has imposed restrictions on importing seven categories of Bangladeshi products, including readymade garments, fruits, and processed foods, plastic products through its land ports, effective May 17, as per a notification from India’s Directorate General of Foreign Trade. This follows Bangladesh’s April 15 ban on yarn imports via land ports.

The circular mandates that Bangladeshi garments can only enter India through Kolkata and Nhava Sheva (Mumbai) seaports, barring all land ports.

Other restricted items include fruits, carbonated and flavoured beverages, processed foods, cotton waste, plastic goods, and wooden furniture, prohibited from entering via land customs stations or Integrated Check Posts in Assam, Meghalaya, Tripura, and Mizoram.

Goods transiting to Nepal and Bhutan are exempt.

Many Bangladeshi exporters view India’s move as retaliation for Bangladesh’s yarn ban, prompted by the Bangladesh Textile Mills Association’s claims of under-declared shipments harming local mills.

“This seems like a reciprocal response,” said a garment exporter, noting that seaport-only imports will raise costs and delay deliveries, particularly for small exporters supplying Indian retailers like Marks & Spencer.

However, as Bangladesh allows Indian imports via seaports, India is unlikely to block Bangladeshi goods by sea.

Bangladesh’s yarn ban raised production costs for apparel makers, despite support from local spinners. National Board of Revenue data shows three-fourths of yarn imports from India already use seaports.

In FY24, Bangladesh imported $9 billion in goods from India, while exporting $1.56 billion, per Bangladesh Bank and Export Promotion Bureau data.