May 21, 2025
DHAKA – Bangladesh does not want any further escalation in tension with India, as the recent retaliatory moves are affecting bilateral trade and both countries’ businesses.
“We will not go for any retaliation,” Commerce Secretary Mahbubur Rahman told a group of journalists yesterday after an inter-ministerial meeting that was attended by representatives from prominent trade bodies.
The meeting was convened to seek the opinion of different ministries, departments, government agencies and the private sector on the matter.
The tension started with Bangladesh’s decision to stop yarn imports from India through the four land ports on April 13. In retaliation, the Indian government decided to suspend the transshipment facility for Bangladeshi garment items.
Then, on May 17, India imposed restrictions on the import of garments, agro-processed foods, furniture and other goods from Bangladesh through land ports.
India is the second-largest import source for Bangladesh after China.
“Our efforts will continue so that no further escalation takes place — we will not retaliate,” he said, adding that Bangladesh has already sent a letter to the Indian commerce ministry through the foreign ministry requesting a commerce secretary-level meeting.
The latest move by the Indian government is not only affecting Bangladeshi businesses but also their Indian counterparts.
“So, please let us sit together and let us try to find a solution,” Rahman said.
A businessman who attended the meeting said he advised the government to immediately send a letter to the Indian government requesting deferment of the restriction on land port use for three months to clear the pending consignments.
“The use of land ports for importing goods from India is very important for Bangladesh,” he said, adding that over the last 10 months, Bangladesh imported 3.5 lakh tonnes of goods through the route, as the use of sea routes is expensive for businesses.
Many businesses are doing trade with India either through letters of credit, the contract method or the advance payment method.
So, if the pending consignments are not delivered, the businesses will have to bear severe financial losses.
Moreover, the amount of trade is immaterial as over the years, an ecosystem of trade has developed between Bangladesh and India. “We want a solution to the problem immediately,” he added.
A representative from a top trade body suggested the government to launch diplomatic and political negotiations with India at the top level.
The commerce secretary-level meeting will help to understand the mindset of the Indian side, he said, adding that the small, medium and large business enterprises will be severely affected if the trade barriers are not removed as soon as possible.
Bilateral trade between the two neighbouring countries last fiscal year was $10.56 billion: Bangladesh exported goods worth $1.56 billion and imported goods worth $9 billion, according to the commerce ministry presentation at the meeting.
Bangladesh imports industrial raw materials, garment items, fabrics, intermediary goods for industrial uses, food, cotton, chemicals, machinery, processed foods, agricultural items, rice, protein items and vegetables from India.
Similarly, in recent years, India has turned into a major export destination, especially for garment items and agricultural produce, as Bangladesh enjoys zero-duty benefit on shipments under the South Asian Free Trade Area of the SAARC since 2011.