India Curbs Imports from Dhaka in Response to Yunus Govt's Stance

The move, seen as a calibrated response to recent developments in Dhaka, aims to tighten control over select trade channels while maintaining broader bilateral economic engagement.

Alongside garments, India has also placed restrictions on how a range of other Bangladeshi products that can be brought into the country.

Yunus Regime's Anti-Indian Stance 

In the wake of the Pahalgam massacre, an aide to Bangladesh's Chief Advisor Mohammad Yunus had put out a post stating that if India attacks Pakistan, Bangladesh should join hands with China to take over the northeast.

Major General (retd) ALM Fazlur Rahman, former chief of Bangladesh's Border Guards and head of a commission formed by the Yunus government, said in his social media account, "If India attacks Pakistan, Bangladesh should occupy the seven states of Northeastern India."

Earlier this year, during a trip to China, Yunus had said Bangladesh was the "only guardian" of the Indian Ocean and that India's northeastern states, which share a nearly 1,600-km border with Bangladesh, are landlocked and have no way to reach the ocean except through his country.

Days after the chief advisor's controversial remarks, India retaliated by clamping down on the transhipment facility it had granted to Bangladesh for exporting goods to the rest of the world.

Indo-Bangladesh Trade To Be Hit

Analysts believe the move will likely take the shine off Bangladesh's exports to India, a growing market for its textile and food products exports.

These new trade rules, issued via Notification No. 07/2025-26 by the Directorate General of Foreign Trade (DGFT), take immediate effect and are part of an amendment to the ‘General Notes Regarding Import Policy’ under the ITC (HS), 2022 Schedule 1.

The restrictions cover fruit and fruit-flavoured carbonated drinks, processed food items such as baked goods, chips, snacks, and confectionery, as well as cotton and cotton yarn waste. 

Imports of these products from Bangladesh will no longer be permitted through any land customs stations or integrated check posts in the northeastern states of Assam, Meghalaya, Tripura, and Mizoram, or through the West Bengal border points of Changrabandha and Fulbari. 

The move is expected to significantly limit informal or small-volume trade through these land borders, redirecting permissible imports through more scrutinised routes.

Besides, imports of plastic and PVC finished goods—excluding inputs like pigments, dyes, plasticisers, and granules used in local industries—will face the same port restrictions. 

Wooden furniture from Bangladesh has also been brought under this tighter regulatory regime, further expanding the list of affected commodities.

Reputation As Top Garment Exporter May Be Dented 

Analysts believe that the move will not only dent Bangladesh's trade but also hit its reputation as a garments exporters coming as it does in the wake of disruptions in sourcing of garments from Dhaka in the wake of riots in August which saw several factories being burnt down by demonstrators supporting the new government and workers' strike earlier this year.

However, India has made certain exceptions: The import of fish, LPG, edible oil, and crushed stone from Bangladesh will continue as before without any new restrictions. 

The changes will, however, not affect Bangladeshi goods exported to Nepal or Bhutan through Indian territory, indicating that New Delhi is calibrating its pressure while avoiding disruption to regional transit trade.

The notification, approved by the Minister of Commerce & Industry and signed by DGFT chief Ajay Bhadoo, signals a sharper edge in India’s trade policy toolkit, possibly hinting at further economic measures if relations continue to sour.