Archive · 8 Jun 2025
India-Bangladesh Trade Route Disruptions Expected Due to New Restrictions
India and Bangladesh are having trade issues.
India stopped letting Bangladesh use its land to send goods to other countries because of port problems.
In response, Bangladesh limited what India could send to its country, hurting businesses.
Now, trade routes between them are disrupted.
This means it's harder to send things like fly ash and other products between the two countries, which can cause problems for businesses and power plants.
Both countries are working to resolve trade disputes that arose from the initial changes.
India ended a transshipment agreement with Bangladesh.
Bangladesh responded by closing land ports to Indian exports.
India restricted Bangladeshi ready-made garment shipments to two ports.
Cargo volumes via IBP routes are down.
The discontinuation of fly ash transportation from West Bengal to Bangladesh will impact thermal power plants.
- Who
- India and Bangladesh are involved.
- What
- Disruptions to trade routes and restrictions on exports and imports between India and Bangladesh are occurring.
- When
- Restrictions were implemented starting April 8, 2025.
- Where
- Indo-Bangladesh Protocol (IBP) routes connecting Kolkata to the North Eastern Region, and Mongla Port.
- Why
- India cited logistical challenges. Bangladesh responded with trade countermeasures.
India's Stance
Bangladesh's Stance
Reasons for Trade Restrictions
India's Stance
India cited logistical challenges, including congestion at Indian ports and airports, as the primary reason for revoking the transshipment agreement.
Bangladesh's Stance
Dhaka announced closure of land ports to Indian year exports; disrupting supply chains to textile mills here.
- Transshipment Agreement End Date
- April 8, 2025
- Land Customs Points in Northeast Affected
- 11
- Cargo Volume Decrease via IBP Routes
- 20%
- Fly Ash Export from West Bengal to Bangladesh
- 4.47 million tons
- Ports for Bangladeshi Ready-Made Garments
- Kolkata and Nhava Sheva