NEW DELHI: Bangladesh cannot cherry-pick the terms of engagement while taking India’s market access for granted, India government sources have said a day after prohibiting imports from Bangladesh through land routes. An official on the condition of anonymity said that while India remains open to dialogue (with Bangladesh), it expects “a fair and reciprocal environment.”
India on Saturday imposed restrictions on imports of certain goods from its eastern neighbour Bangladesh. In a directive issued on Saturday by the Directorate General of Foreign Trade, 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 only 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.
India had previously permitted export of Bangladesh goods through land routes -- Land Customs Stations (LCS) and Integrated Check Posts (ICP) -- and through seaports without undue restrictions. However, officials said Bangladesh continues to impose port restrictions on Indian exports, particularly at LCSs and ICPs bordering NE states despite the issue being raised in all relevant meetings for a long time now.
The official mentioned above said that the restrictions have been put in place especially keeping in mind the economic development of the Northeast. The targeted list of items will be reviewed periodically to ensure that fair and equitable growth is facilitated in the respective northeastern states.
“Industrial growth in the Northeastern states suffer a triple jeopardy due to imposition of unreasonably high and economically unviable transit charges by Bangladesh, denying in practice, access for the Northeast to the Indian hinterland for its manufactured goods and sourcing inputs notwithstanding bilateral transit agreements,” said another government official.
Retaliation to restrictions
On the restrictions imposed on import of ready-made garments, the official said the action was in retaliation to Bangladesh’s move to impose port restrictions on export of Indian yarn through land ports. “It is hoped that this measure will increase opportunity available to Indian Ready Made Garment manufacturers to boost production for both local consumption and export,” said the official.