India announces import restrictions on Bangladeshi goods, presenting opportunities for the textile industry.

India-Bangladesh relations remain tense as the Indian government announced on May 17th import restrictions on certain Bangladeshi goods.

Bloomberg and The Times of India reported on May 18th that India-Bangladesh relations remain tense, and the Indian government announced import restrictions on certain Bangladeshi goods on May 17th. It is reported that the new regulations ban imports of Bangladeshi ready-made garments, processed foods, plastic products, etc., from all land ports, allowing imports only through the two sea ports of Kolkata and Mumbai. The amount of goods affected by the ban amounts to $770 million, accounting for nearly 42% of India's total imports from Bangladesh.

Indian analysts said that this move will help restore the competitiveness of India's textile industry and criticized Bangladesh for "not treating India's northeastern region as its 'exclusive export market'". For Bangladesh, this move will have multiple negative impacts: first, it will severely hit Bangladesh's exports. Data shows that in the fiscal year 2024-25, more than 75% of Bangladesh's ready-made garments need to be exported to India through the Petrapole land port. Second, it will increase the transportation costs for small and medium-sized exporters in Bangladesh. Goods transported by land to India take only 3 days, while shipping takes 2 weeks. Notably, analysts believe that this ban may further worsen India-Bangladesh relations and accelerate Bangladesh's turn toward cooperation with China.

In response, analysts called for both sides to restore trust through dialogue and economic cooperation, avoiding the "weaponization" of trade. It is also reported that the new Indian ban has temporarily not affected goods exported from Bangladesh to Nepal and Bhutan via India. Previously, Bangladesh had restricted imports of certain Indian goods such as cotton yarn and rice and imposed transit fees on Indian goods, causing dissatisfaction in India.

Source: https://www.toutiao.com/article/1832609530995972/

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