All is not well between India and Bangladesh, relations turned sour after the trade war; Who is suffering more losses?

Posted on 19th Apr 2025 by rohit kumar

A trade war is going on between America and China, but along with this, a small trade war is also going on in South Asia between two neighboring countries. These countries are India and Bangladesh.

 

Recently, India had ended the facility of export of Bangladeshi goods from its airports and ports. This has added more tension to the strained relations between the two countries. However, India did not take this step arbitrarily but after three steps taken by Bangladesh to harm India's economic interests.

 

Bangladesh will get a big shock.

 

Bangladesh is not only inviting Chinese companies to create economic zones on the border with India but is also taking steps to affect Indian imports. Bangladesh may have to pay a higher economic price due to these steps taken by the government of Mohammad Yunus.

 

The decision to close three land ports

 

Bangladesh has already started imposing many types of restrictions on imported goods at the Binapole border adjoining India. Also, it has been decided to close three land ports established on the places adjacent to the India-Bangladesh border. Apart from this, another step has been taken to stop the import of Indian yarn through land routes.

 

Yunus government is suffering from anti-India sentiments.

This step was taken when America had announced to imposition of a tax of 37 percent on imports coming from Bangladesh. Despite the great importance of the textile industry in the economy of Bangladesh, the government is stopping the import of cheap yarn from India and promising the American government that it will buy yarn from there. This shows to what extent the Yunus government is suffering from anti-India sentiments.

 

How did India-Bangladesh relations deteriorate?

It is noteworthy that the head of the interim government, Professor Yunus, not only invited Chinese companies to build special economic zones near Chattogram located near the Indian border, but also hinted at the lack of sea routes to the northeastern states of India. This matter was very unpleasant for India. PM Narendra Modi had pointed this out during the BIMSTEC meeting with Professor Yunus in Thailand.

 

Many projects are put on hold.

This attitude of Bangladesh has ruined the efforts made over the last decade to give new dimensions to economic relations with India. Although India has not put any ban on Bangladeshi exports to Bhutan and Nepal from its land, the projects that were being considered to promote Bangladeshi exports have been put on hold for a long time.

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