Bangladesh’s exports to India have experienced a marked decline in recent months, largely due to a series of trade restrictions imposed by the Indian government. Data from the first five months of the current fiscal year (July–November) reveal that exports to India dropped by approximately 6.68 per cent, falling to USD 76 million compared with USD 81 million during the same period last year.
A closer look at the major export categories highlights the uneven impact across sectors:
| Export Product | July–Nov (Current FY, million USD) | July–Nov (Previous FY, million USD) | Decline (%) |
|---|---|---|---|
| Ready-made Garments | 3,000 | 3,250 | 8.8 |
| Processed Food | 975 | 1,120 | 13.0 |
| Jute and Jute Products | 500 | 790 | 37.0 |
The restrictions were implemented in three phases through Indian land ports. The first two phases, on 17 May and 27 June, targeted exports of garments, food items, jute products, cotton-yarn waste, plastics, and wooden furniture. A third phase on 11 August further extended restrictions to additional jute products.
Under the new rules, jute and garment exports are permitted only via Mumbai’s Nhava Sheva port. Meanwhile, processed foods, soft drinks, wooden furniture, cotton-yarn waste, and plastic products must be routed exclusively through selected land ports in West Bengal, except for Burimari and Banglabandha.
Exporters report that these regulations have increased logistical costs and reduced their competitive edge in the Indian market. Garment manufacturers, in particular, are receiving lower prices from Indian buyers due to reciprocal tariffs in the US market, leading some to sell domestically at reduced rates. Shipping delays and higher costs for products transported by sea have also contributed to the decline.
Experts emphasise the strategic importance of the Indian market for Bangladesh. Without streamlined land port operations and strengthened bilateral economic cooperation, export figures may continue to fall in the coming months.
Dr Khondkar Golam Moazzem, Research Director at the Centre for Policy Dialogue (CPD), observed, “Without coordination between politics and economics, Bangladesh’s presence in the Indian market will shrink. A government that ensures equitable engagement with neighbouring countries can help prevent further export reductions.”