Bangladesh's merchandise exports to neighbouring India have suffered a setback, with growth declining during the first seven months of the current fiscal year, mainly due to trade restrictions imposed by India.
According to official data from the state-run Export Promotion Bureau (EPB), Bangladesh's overall exports to India fell by 4.98 per cent to US$1.05 billion during July-January of fiscal 2025-26.
Export earnings from India stood at $1.10 billion in the corresponding period of fiscal 2024-25.
Garment items remained the largest export category, but earnings from the sector declined by 8.13 per cent to $392.84 million in the first seven months of the current fiscal year, compared with $427.62 million in the same period a year earlier, EPB data showed.
During the period, woven garments recorded a sharp fall of 14.96 per cent, despite a 4.78 per cent growth in knit items.
Exporters attributed the downward trend to countermeasures taken by both countries last year, including restrictions on the use of land ports for shipping goods.
In April 2025, India revoked Bangladesh's access to transshipment facilities for exports to third countries.
Subsequently, Bangladesh banned the import of yarn from India through land ports.
Following these moves, India imposed restrictions on Bangladeshi exports via land ports in three phases.
In May and June last year, India restricted the entry of garments, food products, jute products, cotton-yarn waste, plastic products and wooden furniture.
In August, it imposed further restrictions on certain jute products and launched an investigation to impose anti-dumping duties on Bangladeshi jute goods.
Under the restrictions, jute and garment products from Bangladesh can no longer be exported to India through land ports and must instead be shipped via the Novoseva port in Mumbai.
Food products and soft drinks, wooden furniture, cotton-yarn waste and plastic products are allowed only through land ports connected to West Bengal, excluding Burimari and Banglabandha.
Asif Ashraf, managing director of Urmi Group, which exports garments to India, said shipments fell mainly due to India's land port restrictions.
Speaking to The Financial Express, Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said both export and import costs had risen due to the ban on using land ports by both countries.
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Garments can now be shipped through only two sea ports, increasing lead times, he explained.
He added that higher US tariffs on Indian goods have also prompted India to boost domestic consumption to offset the impact.
Abdul Barik Khan, secretary general of the Bangladesh Jute Mills Association (BJMA), said jute exports to India also declined due to anti-dumping duties on Bangladeshi jute goods.
Bangladesh exports jute yarn, sacks and fabric to India, he noted.
Alongside garments and jute products, Bangladesh exports processed food items such as biscuits, chanachur (spicy snacks), chips, fruit drinks, beverages, mustard oil and cakes to India, he added.
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