India slams brakes on Bangladesh land imports, ₹6,600 crore trade disrupted

Business News: The Government of India has imposed a complete ban on the import of many important items including readymade garments, processed food, plastic items coming from Bangladesh through Land Route. This decision has been taken with the objective of protecting Indian industries and promoting local production in the country. The move has banned Bangladesh's import of about Rs 6,600 crore, causing huge disruption in the bilateral trade of the two countries.

The reason for the restriction and the impact on trade

Land route has been an important medium in bilateral trade between India and Bangladesh. But increasing imports of cheap readymade clothes and other items from Bangladesh in recent years caused huge damage to many domestic industries including India's textile industry.

India's Textile Association had long demanded a ban on Bangladeshi imports, as the arrival of these items broke the back of the country's MSMES sector and local artisans due to the zero tariff policy.

Keeping this pressure in mind, the government suddenly took this decision on Saturday, according to which most of the goods coming from Bangladesh will be able to enter India only from the sea ports of Kolkata and Nhawa Sheva. The closure of the land route will affect Bangladesh's trade of about $ 770 million, which is about 42 percent of the total trade of the two countries.

Crisis on ground ports - heavy jam in Benapol

Bangladesh's leading ground port Benapol has been jammed after the land route was banned. Till Saturday evening, at least 36 trucks were stranded with readymade garments, which has stalled the consignment processing there.

Imdadul Haque, General Secretary of the Benapol C&F Agents Association, called this sudden decision a serious challenge for bilateral trade. He says that this ban will not only affect trade, but will also adversely affect employment.

Indian MSME's will get a big opportunity

Although this ban will cause major loss to Bangladeshi trade, this step will prove to be an opportunity for India's development of domestic industries. Especially the Micro, Small and Medium Enterprises (MSMES) sector is expected to get a boost of about Rs 1,000 crore.

Employment opportunities in local industries will increase and the balance of competition in the market will be restored. India's textile industry, which was under pressure from Bangladeshi imports for the past several years, will now be able to promote its products with firm.

Political and economic approach

This decision is also considered part of the government's policy to promote self -reliance (self -sufficient India) in India's economy. Local industries are being protected by prohibiting foreign cheap products so that new employment opportunities are created in the country and production increases.

At the same time, due to this step, there is a possibility of tension in business relationships with Bangladesh. However, both countries have resolved to improve this situation through mutual dialogue.

Important in terms of conservation of industries 

India's decision to ban import on land route from Bangladesh is important in terms of conservation and economic strength of industries. This will not only encourage domestic production but will also reduce commercial imbalance. However, this may lead to short-term pressure on trading relations between the two countries, which can be overcome by interaction and agreement.