Bangladesh’s export to India $1.57b, import $9b

India has consistently maintained the upper hand in bilateral trade with Bangladesh as Bangladesh imports from India far exceeds its exports to India.

Bangladesh imported goods worth $9 billion from India in the 2023–24 fiscal, but exported goods worth only $1.57 billion to India during that period, according to data from Bangladesh Bank and Export Promotion Bureau (EPB).

In 2011, India granted Bangladesh duty-free access to all products, excluding arms and drugs, but initially Bangladesh could not maximise it. The following years, however, saw a rise in exports to India. Bangladesh’s exports to India exceeded $1 billion for the first time in the 2018–19 fiscal.

However, fear grows once gain over possible disruption of Bangladesh’ export to India after the Indian government imposed fresh restrictions on the import of several goods, including ready-made garments, via land ports from Bangladesh.

According to an order issued by India’s Ministry of Commerce and Industry, garments from Bangladesh can no longer be imported via land ports. From now on, Indian importers can import ready-made garments from Bangladesh through Kolkata and Nhava Sheva seaports.

Besides, a list of products such as fruits, fruit-flavored drinks, soft drinks, processed foods, plastic products, yarn, yarn by-products, and furniture can no longer be exported from Bangladesh to the Indian states of Assam, Meghalaya, Tripura, and Mizoram via land customs stations (LCS) or integrated check posts (ICP). This restriction will also apply to the Changrabandha and Fulbari customs stations in West Bengal.

According to land port sources, the export of the restricted products through various land ports in Bangladesh remained suspended on Sunday following the issuance of the order by India’s Ministry of Commerce and Industry on Saturday

Sources at Bangladesh’s Ministry of Commerce said they are considering internal talks at the government levels, as well as with and talks with India on this matter.

Previously, India also withdrew the facility allowing transhipment of Bangladeshi goods to third countries using Indian ports in April this year. India’s Central Board of Indirect Taxes and Customs (CBIC) of India issued an order cancelling the facility, which had been in place since 29 June 2020.

According to EPB data, Bangladesh’s top export to India is ready-made garments. Bangladeshi entrepreneurs exported garments worth $548.8 million to India in the 2023–24 fiscal. Exporters now fear that India's ban on importing garments via land ports will affect the business.

Besides, exporters of processed agricultural products think the fresh Indian restrictions will significantly affect exports in that sector. Bangladesh exported processed agricultural goods worth $156.8 million to India last fiscal.

According to EPB data, in the last fiscal year, Bangladesh also exported $44 million worth of plastic products, $31.3 million worth of cotton waste and yarn, and $6.5 million worth of furniture to India.

Most of these exports were transported via land ports. With the new restrictions on land port exports, people concerned believe these sectors may also experience negative impacts.