Bangladeshi imports worth more than $770 million a year are now subject to new port restrictions imposed by India amid the ongoing tensions. This represents almost 42% of all imports from Bangladesh that India makes.
Data from the Observatory of Economic Complexity (OEC) shows that in 2023, India sent $11.3 billion worth of commodities to Bangladesh. Bangladesh supplied India with $1.89 billion worth of commodities that same year.
Of the 138 nations that Bangladesh imports from, India ranks seventh. Textiles, knitwear, processed foods, jute, cotton yarn waste, ready-made clothing, and more are among Bangladesh’s top imports from India.
The item that is most impacted is ready-made clothing, according to the Global Trade Research Initiative (GTRI). Only two Indian seaports, Nhava Sheva and Kolkata, are currently used to strictly route $618 million worth of ready-made clothing imports. All land channels for the importation of clothing have been closed. The most valuable export route from Bangladesh to India may be significantly reduced by this closure.
Many people believe that India’s port limitations are a reaction to Bangladesh’s recent restrictions on Indian grains, yarn, and other products. It also signaled a change from traditionally amicable economic relations by charging Indian cargo passing through its borders a transit cost of 1.8 taka per tonne per kilometer.
