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Tensions have been simmering between Bangladesh and India. These strains are now affecting trade, with India imposing restrictions on imports from Bangladesh. India has once again banned the import of certain jute products via land routes. Additional jute items have been added to the list of restricted goods.
According to a notification from the Directorate General of Foreign Trade (DGFT), the import of some jute products is restricted only via land routes. These goods can still be imported through the Nhava Sheva port. The ban on land imports of jute products impacts various items. This includes bleached and unbleached woven fabrics of jute or other textile bast fibers, twine, cordage, jute rope, and jute sacks and bags.
Previously, on June 27th, India restricted the import of some jute products and woven fabrics from Bangladesh via all land routes. However, these imports could still be conducted through the Nhava Sheva port in Maharashtra. India had announced similar import restrictions on Bangladesh in April and May.
On May 17th, India imposed port restrictions on the import of certain goods like readymade garments and processed food from Bangladesh. On April 9th, India withdrew the transshipment facility given to Bangladesh for the export of various goods to several countries, excluding the Middle East, Europe, and Nepal and Bhutan. These measures were taken following controversial statements made by Muhammad Yunus, the head of the interim government of Bangladesh, in China.
Since the coup of Sheikh Hasina’s government, there have been reports of attacks on minorities, especially Hindus, in Bangladesh. India has consistently commented on this issue. The relationship between India and Bangladesh has deteriorated following the failure of Yunus to stop attacks on minorities, particularly Hindus. Bangladesh is a major competitor to India in the textile sector. In 2023-24, India-Bangladesh trade was valued at $12.9 billion. In 2024-25, India’s exports were $11.46 billion, while imports are projected to be $2 billion.
