India and Bangladesh Hold 16th Joint Working Group Meeting to Address Trade Friction
New Delhi hosted the 16th meeting of the Joint Working Group (JWG) on Trade this week, serving as a critical platform for India and Bangladesh to navigate escalating trade tensions. The Bangladeshi delegation, headed by Additional Secretary of the Ministry of Commerce Ayesha Akhter, brought forward a series of urgent requests aimed at streamlining cross-border commerce and easing the flow of goods into the Indian market.
Addressing Strained Border Trade
At the heart of the discussions were persistent grievances regarding India’s recent port restrictions. Throughout 2025, New Delhi implemented several measures that significantly impacted the movement of Bangladeshi exports. Notably, in May 2025, the Directorate General of Foreign Trade (DGFT) restricted the entry of ready-made garments from Bangladesh, limiting them to the seaports of Nhava Sheva and Kolkata. These measures were largely positioned as reciprocal actions following Bangladesh’s own restrictions on the import of Indian yarn and rice.
Further complications arose in June 2025, when India moved to ban the import of jute products from Bangladesh via land borders. The directive restricted these imports to the Nhava Sheva port, a move that severely disrupted the supply chains of small and medium-sized exporters who rely heavily on land-based logistics. During the JWG meeting, the Bangladeshi side emphasized that these barriers have hampered bilateral trade growth and urged Indian officials to reconsider these localized restrictions to improve market access.
Dhaka’s Key Demands
Beyond port accessibility, the Dhaka delegation voiced concerns regarding protectionist measures currently in place. Bangladesh has called for the removal of anti-dumping duties currently levied against its jute products and PET film, arguing that these tariffs diminish the competitive advantage of their manufacturing sector in India.
Additionally, the delegation raised the issue of future trade status. As Bangladesh prepares to graduate from the Least Developed Country (LDC) category, officials are concerned about the potential loss of current trade concessions. Dhaka has explicitly requested that India commit to retaining specific tariff preferences even after the graduation takes effect, ensuring that the transition does not lead to a collapse in bilateral trade volumes.
India’s Counter-Proposals and Future Outlook
While New Delhi has yet to issue a definitive decision on Bangladesh’s demands for lifting specific trade barriers, the Indian delegation utilized the meeting to table a series of reciprocal proposals aimed at enhancing regional connectivity. India suggested the reopening of several closed border markets, integrated check posts, and land customs stations to facilitate smoother trade flow.
Furthermore, New Delhi indicated a willingness to ease restrictions on the supply of cotton yarn and other essential commodities from India to Bangladesh via specific land routes. The discussions also touched upon infrastructural development, with both sides deliberating on the optimization of trade corridors such as the Agartala–Akhaura link and the expansion of rail connectivity.
As both nations look to balance domestic protectionism with the need for strong regional economic integration, the JWG serves as a vital barometer for the future of South Asian trade relations. The outcome of these deliberations will be closely watched by industries on both sides of the border, particularly those in the textile and agriculture sectors that have been most affected by the recent policy shifts.
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