A Concerning Drift

India's abrupt decision to shut down all land ports for export of apparel from Bangladesh has come as a disruption—imperative or otherwise—in the trade equation of the two South Asian nations that have always dealt with each other in amicable terms.

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Announced via a notification from the Directorate General of Foreign Trade (DGFT), the move appears to be as much about timing and symbolism as it is about trade policy. For a sector in which 93 per cent of exports were moving through northeastern land ports, this sudden shift has sent ripples across businesses on both sides of the border. On the surface, these curbs are described by some as non-tariff barriers. For Bangladesh, trade in garments serves as an economic lifeline—making up nearly USD 700 million in annual exports to India. With this new restriction in place, exporters will now face longer shipping times and higher transport costs—as trade through certain sea routes is still permissible. This, in effect, will result in a kind of rerouting. Furthermore, Indian retailers who rely on just-in-time inventory, especially in fast fashion, could also feel the pinch through delayed deliveries and empty store shelves for the time being.

It must be understood here that what's playing out is not just a logistical reroute; it is rather a disruption with real economic consequences.