India is imposing new import restrictions on Bangladesh. Beginning Friday, India has restricted imports of jute, woven fabrics and yarns from Bangladesh through any land port on the border.
Imports will only be allowed through Nhava Sheva port in Mumbai.
“Import from Bangladesh shall not be allowed from any land port on India-Bangladesh border,” the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, said in a notification, that was “effective immediately”.
This latest order introduces a new sub-paragraph under Para 2, mandating that specific imports from Bangladesh must adhere to designated entry points, signaling a strategic shift to regulate trade and protect domestic industries.
The move is aimed at protecting domestic jute industry.
Jute is produced in West Bengal, Bihar, Assam, Odisha, Andhra Pradesh, Tripura and Meghalaya and jute industry employs around four lakh workers in organised mills and diversified units.
Bangladesh reportedly had been pushing jute exports and incentivising the same, which led to artificially depressed prices in India.
“Artificially depressed prices caused by subsidised imports have had a direct and adverse impact on the income of jute farmers,” those in the know said.
The latest restrictions follow earlier curbs, imposed from May 2025, which limited Ready Made Garments (RMG) and other items like processed foods and plastics to Nhava Sheva and Kolkata seaports, excluding land customs stations in northeastern states.
Industry experts suggest this move aims to curb the influx of cheaper Bangladeshi goods, which have reportedly impacted local manufacturers, particularly in textiles and jute sectors.
The phased tightening of port restrictions reflects a reciprocal trade policy, responding to Bangladesh’s own limitations on Indian yarn and rice imports.
Trade analysts estimate that these measures could redirect billions in trade value, potentially boosting Indian production by up to ₹1,000-2,000 crore annually, as local industries fill the gap left by restricted imports.
However, the policy has sparked mixed reactions. While domestic producers welcome the protection, Bangladeshi exporters, who rely heavily on land routes for the $700 million trade with India, face logistical challenges and increased costs.
Exemptions granted for transit goods to Nepal and Bhutan, as seen in previous orders, offer some relief.
The broader impact on bilateral trade remains uncertain.
However, re-export of these items - jute, woven fabrics - which are Bangladeshi goods (as per their origin) back to India from Nepal or Bhutan shall not be allowed.
“Re-export of… Bangladesh goods to India from Nepal/Bhutan shall not be allowed,” the notification said.