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Business News: Business relations between India and Bangladesh have once again come down. India has completely banned the import of jute and jute products coming via road from Bangladesh. Now only a limited amount of imports will be possible through the Nhava Sheva port of Maharashtra, and that too only by sea route. This decision has been implemented with immediate effect.
This step was taken by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce, Government of India, and the notification was taken late Friday night. Its purpose is to protect the domestic jute industry and curb improper trading activities of Bangladeshi exporters.
Indian productive prices were lagging behind in competition from subsidized and cheap-priced jute products—such as jute thread, raw fiber, sacks, bags, etc.—coming from Bangladesh. This was not only causing losses to the domestic industry but also affecting the livelihood of thousands of workers in Eastern India's Jute Belt (West Bengal, Odisha, Assam, Bihar, etc.).
India had already imposed anti-dumping duty on Bangladeshi jute products, but despite this, these products were being sent to India through wrong labeling, misuse of duty-free export companies, and fake announcements. A senior Commerce Ministry official said, "The ban was necessary to stop long-standing improper trading practices."
This decision is being seen not only from a business perspective but also from a political and strategic perspective. After the fall of Sheikh Hasina's government, the interim government led by Mohammad Yunus has come to power in Bangladesh. Yunus is considered close to China. Recently, anti-India statements in Beijing increased Delhi's resentment.
Experts believe that this ban is not just an economic answer but also a diplomatic sign—that India will not hesitate to give strategic punishment to those who take relations lightly with their neighbors.
Prior to this ban, India gave another blow to Bangladesh. India abolished the use of the Indian site customs stations and ports to export goods to third countries. This means that Bangladesh will no longer be able to send its goods to other countries through India's land or sea routes, which will increase both its logistics cost and complexity.
India imported readymade garments worth about $660 million from Bangladesh last year. These included products of H&M, ZARA, and other global brands, which are made in Bangladesh and exported worldwide. These clothes are also sold in Indian retail markets and malls. If India expands the scope of its restrictions, it can also affect Bangladesh's garment industry and millions of workers there.
India's move is considered a strong gesture for the Mohammad Yunus government. It is clear that the business partnership may be endangered by bending in favor of China and adopting an anti-India stance. Now it is a big question for the interim government of Dhaka as to how it handles its relations with India—while living in diplomatic dignity or under Chinese influence, taking more losses.
India's decision is being seen as a joint action on all three fronts of trade, security, and foreign policy. This not only gives protection to the domestic industry but also gives a message that disregard in exchange for intimacy will now be given from "Economic Surgical Strike."