'Restrictions on Bangladesh exports restore equality, ties to be based on reciprocity'

NEW DELHI: India’s land port restrictions imposed on select exports from Bangladesh to the northeast will help restore equality in the relationship, government sources said, stressing that the measures announced by the Indian government restore equal market access for both countries. Bangladesh has itself been seeking equality in engagement with India, said a source speaking on condition of anonymity.

India had on Saturday imposed port restrictions on specified Bangladesh exports to India across all land customs stations (LCS)/ integrated check posts (ICP) in Assam, Meghalaya, Tripura and Mizoram, along with 2 LCS in West Bengal. This followed Dhaka’s refusal to lift port restrictions on Indian exports, particularly at LCS and ICP bordering northeastern states, despite India having long raised this issue bilaterally.

“While India had hitherto allowed all exports from Bangladesh without restrictions, the transit and market access to the north east had been restricted by Bangladesh,’’ said another source. India has also imposed port restrictions on imports from Bangladesh of ready-made garments across all land ports, allowing imports only from Kolkata and Nhava Sheva seaports. India is hoping this will boost production by Indian manufacturers for both local consumption and exports.

According to government authorities, relationship with Bangladesh will be on reciprocal terms. “Ready-made garment exports from Bangladesh restricted to only two seaports (Kolkata and Nhava Sheva, Mumbai) is a reciprocal measure to Bangladesh imposing similar trade restrictions on Indian yarn and Rice as well as selectively enhanced inspection on all Indian goods exported to Bangladesh,’’ said the source, adding that Bangladesh needs to realise it cannot cherry pick terms of bilateral trade solely for its benefit or assume northeast is a captive market for its exports, while denying it market access and transit.

PM Narendra Modi had recently said that the northeast is integral to Bimstec. The equal market space now available in the resource-rich northeast, according to Indian officials, is expected to give a fillip to manufacturing and entrepreneurship in the region under the Atmanirbhar Bharat schemes and policies.

Industrial growth in the northeastern states had taken a hit because of the imposition of unreasonably high and economically unviable transit charges by Dhaka, even as Bangladesh itself enjoyed free access to the entire northeastern market.