As a reciprocal measure, India has imposed a ban on the import of various goods from Bangladesh through land routes, significantly impacting Dhaka, which already faces a substantial trade imbalance of USD 9.2 billion with Delhi for the fiscal year concluding in March 2024.

According to a Commerce Ministry notification dated May 17, imports originating from Bangladesh will now be exclusively permitted through the seaports of Nhava Sheva in Mumbai and Kolkata.

The list of affected goods encompasses a range of items, including fruits, flavored and carbonated beverages, processed foods, wooden furniture, plastics, dyes, and cotton and cotton yarn waste, among other products.

Imports of these products are now prohibited through the land customs check posts located in Assam, Meghalaya, Tripura, Mizoram, and at Changrabandha and Fulbari in West Bengal.

However, certain essential goods such as fish, edible oil, LPG, and crushed stones have been excluded from this import restriction. This recent action is anticipated to further increase the cost of Bangladeshi goods, potentially discouraging Indian importers.

Bangladesh, a significant exporter of textiles and ready-made garments, will now face considerable challenges as it can no longer transport these goods via land routes, severely impacting Dhaka's export sector.

Last month, the Narendra Modi government discontinued the transshipment facility that had previously facilitated the smooth transit of Bangladesh's export cargo to neighboring countries such as Bhutan, Nepal, and Myanmar.

Days later, Bangladesh halted its yarn imports, which constitute 30% of Delhi's textile exports to Dhaka, via the Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari land ports.

Last week, Bangladesh's Chief Adviser Muhammad Yunus proposed "an integrated economic plan for Bangladesh, Nepal, Bhutan, and the Seven Sisters," following his call two months prior for China to expand its economic influence into both Bangladesh and India's seven northeastern states.