Recent developments have strained relations between Bangladesh and India, impacting trade. India has placed further restrictions on the import of jute products through land routes. These restrictions include additional jute-related items, affecting trade dynamics between the two nations.
The Directorate General of Foreign Trade (DGFT) has specified that certain jute products are now restricted from being imported via land routes. Despite the ban on land imports, these goods can still be imported through the Nhava Sheva port. The import ban via land routes affects items such as bleached and unbleached woven fabrics of jute and other bast fibers, twine, cordage, jute rope, and jute sacks and bags.
Previously, on June 27, India restricted imports of specific jute products and woven fabrics from Bangladesh via all land routes, while permitting imports via Nhava Sheva port in Maharashtra. Prior to this, import restrictions were also announced in April and May. On May 17, India implemented port restrictions on goods like readymade garments and processed food from Bangladesh. Additionally, on April 9, India withdrew the transshipment facility for various goods exported from Bangladesh to multiple countries, excluding the Middle East, Europe, and Nepal and Bhutan. These measures are attributed to controversial statements made by Muhammad Yunus, the head of the interim government of Bangladesh, in China.
India and Bangladesh are experiencing a strained relationship. This is partly due to concerns regarding the treatment of minorities, particularly Hindus, in Bangladesh. India has been vocal about this issue. The strained relationship also stems from the alleged failure to protect minorities, leading to a negative impact on trade. Bangladesh is a major competitor in the textile sector. Trade between India and Bangladesh reached $12.9 billion in 2023-24, with India’s exports at $11.46 billion and imports projected at $2 billion in 2024-25.