Directorate General of Foreign Trade (DGFT) notified the restrictions under Foreign Trade (Development & Regulation) Act, 1992 and Foreign Trade Policy, 2023.

Recent Trade restrictions imposed by India on Bangladesh

• Restriction on readymade garments and jute: India banned the entry of a certain range of readymade garments and jute items through land ports, leaving the Nhava Sheva port in Maharashtra.
• It also banned export by Bangladesh of fruits, processed food items, etc., via the land ports of Assam, Meghalaya, Mizoram, and Tripura and Land Customs Stations.
• In March 2025, India revoked the transshipment facility under the 2020 agreement which facilitated export of Bangladeshi goods through Indian Land Customs Stations (LCSs) to third countries.

Other irritants in India-Bangladesh relationship

• Increasing influence of China: China, Pakistan, and Bangladesh nexus with first trilateral meeting in Kunming.
• Political instability: No elected government in Bangladesh since resignation of PM of Bangladesh in 2024.
• Rising Radicalization and ill treatment of minorities in Bangladesh:  It could impact security of Bangladesh and India.
• Internal Security Issues: Illegal migrations from Bangladesh as well as from Myanmar (E.g., Rohingyas) have been causing conflicts especially in the Northeastern region.
• River Water Dispute: Absence of proper mechanism for sharing of waters. E.g., Teesta.