US EditionBusinesses count costs as India and Bangladesh impose trade restrictions
- India and Bangladesh have imposed reciprocal trade restrictions beginning in early 2025, straining longstanding economic ties between the two countries.
- The trade restrictions followed months of political tension sparked by Bangladesh’s interim administration demanding the extradition of former Prime Minister Sheikh Hasina from India.
- Bangladesh halted imports of Indian cotton yarn to protect local industries, while India suspended a transhipment facility serving Bangladeshi exports, disrupting established trade routes valued at billions of dollars.
- In 2024, India exported $1.6 billion in cotton yarn to Bangladesh, with a third passing through land ports, while Bangladesh’s clothing exports reached $38 billion, illustrating the financial stakes involved.
- These embargoes and political disagreements threaten to damage trade, escalate anti-India sentiment in Bangladesh, and undermine people-to-people connections built over years.
5 Articles
5 Articles
India and Bangladesh impose trade restrictions as global trade war escalates
Estimated reading time: 3 minutes India and Bangladesh have been enacting reciprocal trade restrictions over the past month as political and economic tensions between the two Commonwealth members increase. Both India and Bangladesh face exceedingly high tariffs from the US – 27% and 37%, respectively – which led some to hope the South Asian giants would band together and strengthen their trade ties. Instead, the relationship is souring, potenti…
India-Bangladesh trade restrictions rattle businesses
Businesses in South Asia are on edge as India and Bangladesh engage in tit-for-tat trade restrictions following months of rising tensions, reports BBC. In a recent move, Bangladesh blocked land imports of Indian cotton yarn, aiming to protect its domestic textile sector from cheaper Indian alternatives.
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