In what seems like another ‘retaliatory’ move, the Indian government has imposed restrictions on imports of certain goods from Bangladesh.
In a directive issued on Saturday by the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, the import of all kinds of ready-made garments from Bangladesh through land ports has been prohibited. These goods will only be allowed to be imported through the seaports of Nhava Sheva and Kolkata.
A wider range of goods—including fruit and fruit-flavoured carbonated drinks, processed food items, cotton and cotton yarn waste, plastic and PVC finished goods (excluding essential industrial inputs such as pigments, dyes, plasticisers, and granules), and wooden furniture— will face more stringent port restrictions.
These items will not be allowed entry through any Land Customs Stations (LCSs) or Integrated Check Posts (ICPs) in the northeastern states of Assam, Meghalaya, Tripura, and Mizoram. The restriction also extends to LCSs at Changrabandha and Fulbari in West Bengal.
However, the DGFT clarified that these restrictions do not apply to certain essential imports. Items such as fish, liquefied petroleum gas (LPG), edible oil, and crushed stone will continue to be permitted through all existing land and sea ports.
The DGFT notification has also clarified that these port restrictions are not applicable to Bangladeshi goods transiting through India but destined for Nepal and Bhutan.
Though the government has not disclosed specific reasons, it is likely that the move came in the wake of Bangladesh restricting land imports of cotton yarn from India to protect local industries from cheaper imports. India had earlier stopped the transhipment facility it had offered Bangladesh to export its cargo to third countries via its ports and airports.
India’s total annual trade with Bangladesh is around $13 billion with imports from Bangladesh at $2 billion, as per the latest data available with the Ministry of Commerce.
Bangladesh's annual ready-made garment exports to India is estimated at around USD 700 million and 93 per cent of these shipments enter India through land ports.
There are 11 land transit points in northeast for trade between India and Bangladesh. Out of them, three are in Assam, two in Meghalaya and six in Tripura.
India had previously permitted export of Bangladesh goods through all land trading points and seaports without undue restrictions.
However, Bangladesh continued to impose port restrictions on Indian exports at Land Customs Stations (LCS) and Integrated Check Posts (ICP) bordering northeastern region, people familiar with the matter said.
India had taken up the issue with Dhaka but there was no positive response.
Further, yarn exports from India across land-ports have been stopped by Bangladesh with effect from April 13.
The people cited above said Indian exports are subjected to rigorous inspection on entry, and Indian rice exports are not allowed through Hili and Benapole ICPs since April 15, in addition to existing restrictions.
Industrial growth in the northeastern states suffered due to imposition of "unreasonably high" and "economically unviable" transit charges levied by Bangladesh, the people cited above said.
Bangladesh's approach resulted in denying access to the northeast from Indian hinterland.
Due to land-port restrictions by Bangladesh, the northeastern states are suffering from lack of access to Bangladesh market to sell locally manufactured goods, restricting the market access to primary agricultural goods only, the people said.
Bangladesh, on the other hand, has free access to the entire northeast market, creating an unhealthy dependency and stymieing growth of manufacturing sector in the north-eastern states, they said.
In order to promote 'Atmanirbhar Bharat' and support local manufacture in the Northeastern states, it is understood that India has decided to impose port restrictions across all LCSs and ICPs in Assam, Meghalaya, Tripura and Mizoram, they added.
(With inputs from PTI)
