New Delhi: India has sharply tightened import restrictions on Bangladeshi jute products and woven fabrics, allowing entry only through the Nhava Sheva seaport in Maharashtra.
According to a notification issued by India’s Directorate General of Foreign Trade (DGFT), imports of key Bangladeshi jute products, including yarns, woven fabrics, and flax-based fibers will no longer be permitted through any land ports along the India-Bangladesh border. The decision took immediate effect.
While the directive exempts goods in transit to Nepal and Bhutan, it strictly bars any re-export from those countries into India. The restriction is expected to significantly raise transportation costs for Bangladeshi exporters, who now face the longer and costlier sea route, posing serious implications for the country’s jute industry, which supports over 3 million workers.
This latest trade curb follows a series of similar measures in recent months. In April, India revoked a key transshipment facility used by Bangladesh for overseas exports. In May, it reportedly imposed new port restrictions on Bangladeshi garments and food products.
Despite tensions, trade between the countries remains strong, with bilateral trade reaching $14 billion in 2022–23. However, the trade heavily favors India, which exported over $11 billion worth of goods to Bangladesh, making Dhaka its largest trading partner in South Asia.
Adding to the friction is India’s reported consideration of reviewing the 1996 Ganga Waters Treaty, due to expire in 2026. The agreement is critical for water security in Bangladesh’s southwest, where dry-season flows from India are vital.
With trade barriers mounting and a pivotal water-sharing treaty under review, India-Bangladesh ties, long held up as a model for South Asian cooperation appear to be entering a phase of increased uncertainty and strategic recalibration.
