India has imposed new restrictions on imports from Bangladesh via land ports, affecting goods worth around $770 million—approximately 42% of total imports from its eastern neighbour, the Global Trade Research Initiative (GTRI) has said.

Under the new measures, several Bangladeshi products, including ready-made garments, processed foods, and plastic items, can now only enter India through designated seaports. For example, garment imports are restricted to Kolkata and Nhava Sheva ports, and land route access is now banned.

GTRI suggests the move is a response to Bangladesh’s own trade barriers on Indian exports and Dhaka’s growing alignment with Beijing. In March 2025, Bangladesh’s interim leader, Muhammad Yunus, referred to India’s northeastern states as landlocked during a visit to China, where both countries signed agreements worth $2.1 billion.

Indian media reports indicate that the policy change comes amid India’s unease over political shifts in Bangladesh following Prime Minister Sheikh Hasina’s exit.

Since late 2024, Dhaka has placed multiple curbs on Indian exports—banning yarn imports via land ports, tightening rice export controls, and restricting paper, tobacco, fish, and powdered milk. A new transit fee on Indian goods has also been introduced.

Indian officials argue these measures have disrupted trade, particularly affecting India’s northeast, which depends on transit access through Bangladesh for economic connectivity.