India decides to pass a decision aimed at ensuring fair land ports to curb Bangladesh exports: Source

Government sources said on Sunday that India’s decision to curb Bangladesh’s ready-made clothing exports and several other consumer goods exports through land ports aims to ensure fairness and equality of bilateral trade. They said India’s trade relations with Bangladesh would be based on “reciprocal terms” and the decision to limit the export of ready-made garments in neighboring countries was in response to similar trade barriers imposed by Dhaka on Indian yarn and Rice.

India on Saturday decided to enter ready-made clothing from Bangladesh only through Kolkata and Nhava Sheva seaports, and import a range of consumer goods through land transport posts in the northeast.

Apart from ready-made clothing (RMG), plastics, wooden furniture, carbonated beverages, processed foods, fruit-flavored beverages, cotton and cotton yarn waste, no entry into India through Meghalaya, Assam, Tripura and Mizoram and Philbari and Meghalaya, Assam, Tripura and Philbari in the provinces of Meghalaya, Assam, Tripura and Mizoram and Phulbandha.
Five weeks after the nearly five-year class cargo arrangement ended in New Delhi, new restrictions on consumer goods in Bangladesh were imposed, which transports Bangladesh export goods to third countries through Indian airports and ports.

Sources say India’s land port restrictions imposed on certain exports from Bangladesh to the Northeast are expected to restore equality in the relationship.

They said that India has allowed all exports to Bangladesh so far, but Bangladesh has restricted transportation and market access to the northeast. The source added that India’s measure restored equal market access between the two countries. New Delhi’s position is that relations with Bangladesh will be subject to reciprocity terms, the source said.

“Restricting the import of ready-made clothing from Bangladesh through the two seaports is a mutual measure against Bangladesh, imposing similar trade restrictions on Indian yarn and Rice, and selectively enhancing inspections of all Indian goods exported to Bangladesh,” one of the sources.

The move to restrict ready-made clothing through land ports is of great significance as it is expected to have an adverse impact on the industry.

Bangladesh is a major global exporter of ready-made clothing, with the industry’s export value estimated to be US$38 billion in 2023.

Its annual RMG exports to India are estimated to be around US$700 million, with 93% of RMG cargo entering India through land ports.

New Delhi also opposed Bangladesh, viewing the Northeast as its captive market. Another source said: “Bangladesh needs to realize that it cannot choose the terms of bilateral trade just for the sake of interests, nor can it consider the Northeast as a captive market for its exports, while denying IT market access and transportation.”

As Prime Minister Narendra Modi stressed, the Northeast is an integral part of the Bimstec region.

“The equal market space available in the resource-rich Northeast region is expected to provide a fill in the manufacturing and entrepreneurship of the Atmanirbhar Bharat program and policies,” a second source said.

In addition to India and Thailand, Bimstec (Bay of Bengal Multi-sector Technology and Economic Cooperation Initiative) includes Sri Lanka, Bangladesh, Myanmar, Nepal and Bhutan.

Between India and Bangladesh, there are 11 land transportation sites in the northeast for trade. Of them, three are in Assam, two in Meghalaya and three in Tripura.

India has previously exported Bangladeshi goods through all land trade points and seaports without excessive restrictions.

However, Bangladesh continues to impose port restrictions on the Indian Customs Station (LCS) (LCS) and the integrated checkpoint station (ICP) bordering the Northeast.