India has imposed strict restrictions on the entry of Bangladeshi goods through land ports of five northeastern states. This information was given in a report by ANI News on Saturday (May 17).
According to the new decision, Bangladeshi goods will no longer be able to enter India through land ports of Assam, Meghalaya, Tripura, Mizoram and Fulbari and Changrabandha in West Bengal. Although 93 percent of Bangladesh's exports used to enter India through these routes.
From now on, these goods can be sent only through the Kolkata seaport in West Bengal or the Nava Sheva port in Maharashtra. As a result, both transportation costs and time will increase for exporters.
The Indian Commerce Ministry claims that even though Bangladesh has unilaterally gained access to the Indian market, it is not providing equal opportunities for Indian goods. A ministry official said, "Trade will continue on the basis of mutual benefit, no more unilateral concessions."
India also has objections to transit fees. They allege that Bangladesh charges a fee of 1.8 taka per tonne per kilometer for transit, while the domestic rate is 0.8 taka per tonne. This is hurting the industrial sector in the northeastern region of India.
The ban will hamper Bangladesh's exports of ready-made garments, plastics, melamine, furniture, juices, soft drinks, bakery and processed food products. The biggest impact will be on the ready-made garments sector, from which Bangladesh earns about 740 million US dollars every year.
Indian analysts believe that this decision could create tension in the trade relations between the two countries. While this is a major financial blow for Bangladesh, it could be a big opportunity for local Indian industrialists to capture the market.