• India has imposed restrictions on imports from Bangladesh, significantly impacting trade.
• The move affects approximately $770 million worth of goods, particularly textiles and food products.
• This action is viewed as a reciprocal measure following Bangladesh's recent import restrictions on Indian goods.

India's commerce ministry announced sweeping restrictions on imports from Bangladesh, especially targeting the textile sector, which could disrupt trade worth around $770 million. The new rules, effective immediately, move many Bangladeshi goods, including garments, processed foods, and plastics, previously imported via land ports, to select seaports only: Kolkata and Nhava Sheva. This shift affects nearly 42% of Bangladesh’s total exports to India, with garment exports alone valued at about $618 million facing longer transit times and higher costs, according to India Times and South China Morning Post.

The recent restrictions are seen as a "reciprocal measure," following Bangladesh's own curbs on Indian imports, including cotton yarn and rice, amid deteriorating diplomatic relations after the ousting of former Bangladeshi Prime Minister Sheikh Hasina. An Indian government source highlighted that these import limitations aim to restore equal market access between the two nations, which has been compromised by conflicting trade practices. This situation is particularly alarming for Bangladeshi exporters, who rely heavily on the Indian market for their products, as mentioned in reports from Dawn and India Times.

Experts warn that the new policy may create a temporary disruption in supply chains for both Bangladeshi and Indian manufacturers, possibly leading to increased prices for consumers. The loss of the efficient Petrapole land port, which accounted for over 75% of apparel imports, may hinder small Bangladeshi exporters significantly. Ajay Srivastava from the Global Trade Research Initiative (GTRI) noted that the shift would help Indian manufacturers regain competitiveness, as Bangladeshi firms had enjoyed an unfair advantage due to duty-free access to Chinese fabrics, according to India Times and South China Morning Post.

The Indian Textile and Clothing Industry is positioning this restriction as a chance to diminish the reliance on imported apparel and textiles, potentially realizing a market opportunity worth ₹1,000–2,000 crore. However, industry analysts caution that rising prices of apparel may be on the horizon if supply chains are affected, which could lead to a 2-3% increase in costs for popular clothing items. This strategic response highlights the escalating trade rivalry and the complexities involved in bilateral economic relationships between the two nations, according to India Times and Dawn.