New Delhi: Restrictions have been imposed by India on imports of ready-made garments from Bangladesh only to Kolkata and Nhava Sheva ports. India has also restricted the import of various consumer goods through 11 land border posts in the northeast. These caps have been slapped in response to trade limitations imposed by Dhaka. It is like a tit-for-tat move.
Around a month ago, amid soured ties between the two neighbouring countries, New Delhi had scrapped a nearly five-year-old arrangement that allowed the trans-shipment of Bangladeshi export cargo to third countries through Indian airports and ports.
According to a notification issued by the Directorate General of Foreign Trade, new restrictions will permit Bangladeshi exports of ready-made garments (RMG) only through the Kolkata and Nhava Sheva seaports. This move is likely to have a massive impact, as Bangladesh exports around $700 million worth of RMG to India annually, with 93% of these shipments currently exported through land ports, Hindustan Times reported.
According to a PTI report, India restricted imports worth USD 770 million from Bangladesh, covering nearly 42 per cent of bilateral imports. Key goods like garments, processed foods, and plastic items are now limited to select sea ports or barred from land routes entirely, it pointed out.
The restrictions announced on Saturday will not affect Bangladeshi goods transiting through India en route to Bhutan and Nepal.
“Indian textile firms have long protested the competitive edge enjoyed by Bangladeshi exporters, who benefit from duty-free Chinese fabric imports and export subsidies, giving them a 10-15 per cent price advantage in the Indian market,” according to think tank Global Trade Research Initiative (GTRI). The port restrictions will help Indian MSMEs (micro, small, and medium enterprises) from the textiles sector, GTRI founder Ajay Srivastava was quoted as saying by PTI.
Bangladeshi exports of various consumer goods and other items — including ready-made garments (RMG), plastic and PVC finished products, wooden furniture, fruit-flavoured and carbonated beverages, processed foods like bakery and confectionery items, as well as cotton and cotton yarn waste — will be banned from passing through 11 land customs stations and check posts located in Meghalaya, Assam, Tripura, and Mizoram, along with the Phulbari and Changrabandha posts in West Bengal, sources pointed out.
Till now, India had permitted Bangladesh to export goods through all land customs stations (LCSs), integrated check posts (ICPs), and seaports without much restrictions. However, sources said that Bangladesh has imposed port restrictions on Indian exports, especially at LCSs and ICPs along the border with the seven northeastern states, even though India repeatedly raised the issue in bilateral meetings.
In addition, from April 13 this year, Bangladesh put a stop to yarn exports from India through land ports, and Indian exports are subjected to strict inspection, which causes substantial delays. Indian rice exports too were barred through Hili and Benapole ICPs from April 15.
