[🇧🇩] How Is Restricting Trade and Visas to Bangladeshis Affecting India?

[Saif]

He was alone so everyone knows his name. Whole BD is fond of camel cola. Afterall they have to pretend to be like C grade Arabs.

First of all that guy is not a Bangladeshi. 2nd of all, Bangladesh is not a camel country. So drinking camel cola is out of the question. Bangladeshis don't drink cow cola. From an ordinary Indian to your prime minister everybody in India is fond of piss. Morarji Ranchhodji Desai used to drink his own piss. When Hindu Indians go to Arab countries they fall in love with camels. You know why? Because in Arab countries cows are not as available as camels. So, naturally Hindu Indians in Arab countries start drinking camel cola as an alternative to cow cola. Cow sh1t/camel sh1t is your staple food. You eat cow sh1t/camel sh1t profusely. By the by, you have another habit for which you guys are world famous. You defecate in the open. You are the only nation in the world who defecate in the open and who never make toilets in their houses

 

[Saif]

After seeing that their businesses are going bankrupt without Bangladeshi customers the Indian businessmen are calling the Bangladeshis elder brother and requesting to do business with them like before. As per their estimate almost fifteen thousand Indians have lost their jobs already as the Bangladeshi customers are doing business with other countries avoiding India. If this trend continues more and more businesses will shut down and more and more Indians will lose their jobs.

 

[Saif]

Indian truck drivers are staging hunger strike until death. They have demanded that Bangladesh must allow Indian trucks to enter into Bangladesh. Indian truck drivers are saying that thousands of them have become unemployed and are unable to pay tuition fees for their children. They need business from Bangladesh to maintain their families.

 

[Saif]

Siliguri economy hit hard by declining Bangladeshi visitors amid rising tensions

Siliguri's economy, heavily reliant on Bangladeshi tourists, is facing a downturn amid India-Bangladesh tensions. Local businesses urge diplomatic efforts to restore visitor flow and consider promoting domestic tourism as a solution.

www.indiatodayne.in

Siliguri economy hit hard by declining Bangladeshi visitors amid rising tensions
Siliguri's economy, heavily reliant on Bangladeshi tourists, is facing a downturn amid India-Bangladesh tensions. Local businesses urge diplomatic efforts to restore visitor flow and consider promoting domestic tourism as a solution.

India TodayNE
Dec 05, 2024,
Updated Dec 05, 2024, 10:51 AM IST

Siliguri, a key gateway to Northeast India, is facing significant economic setbacks due to a drop in Bangladeshi visitors amid the escalating political and social unrest in Bangladesh.

The town, known for its tourism, education, medical services, and trade, has seen a sharp decline in tourists, particularly from Bangladesh, as the crisis deepens in the neighbouring country.

Siliguri's strategic location near the borders of Nepal, Bangladesh, and Bhutan has made it a popular destination for Bangladeshi nationals, who frequent the area for tourism, education, medical treatment, and visa-related matters. However, recent events in Bangladesh have led to a fall in the number of Bangladeshi visitors, severely affecting local businesses, especially hotels and bus services.

Hotel owners in Siliguri are facing major losses, with many establishments running at low occupancy. Bookings have been cancelled by Bangladeshi nationals, and several bus operators, who rely on the regular Siliguri-Dhaka route, report zero passengers in the past week.

Bipin Kumar Gupta, a local hotelier, explained that the political unrest in Bangladesh has had a direct impact on Siliguri’s economy. He noted that both educational and medical tourism have been particularly affected, with many Bangladeshi students and patients cancelling their plans to visit the region.

The current political instability in Bangladesh particularly concerns over attacks on religious minorities, has led to a cautious atmosphere. Many potential visitors from Bangladesh, including students seeking educational visas, are hesitant to travel to India, fearing for their safety and future prospects.

Local bus operator Shiv Prasad Ghosh, who runs services between Siliguri and Dhaka, shared similar concerns.

Ghosh stated that their buses, which were once always full of passengers from Bangladesh, had now come to a complete halt. He added that they were facing significant losses and called for both governments to resume dialogue and find a solution.

With the peak tourist season approaching, businesses in Siliguri are struggling. Tourists from Bangladesh, who typically visit for shopping, sightseeing, or education, have cancelled pre-booked accommodations, further deepening the economic crisis.

As tensions continue to affect cross-border movement, Siliguri’s local businesses are urging both governments to take swift action to restore normalcy and improve bilateral relations.​

 

[Saif]

Petrapol Border---once vibrant business area is empty now because of loss of business from Bangladesh. Indian business people are saying that they have become bankrupt and unable to run their families anymore. On the other hand, Bangladesh is doing perfectly alright without Indian business because most of our businesses are with Europe, the USA and China. We export little to India.

 

[Saif]

Bangladesh has stopped the exports of Sarees to India and as a result of this West Bengal is experiencing severe shortages of Sarees. Bangladesh is winning the trade war started by India. The economies of India's West Bengal and North-East are totally dependent on Bangladesh.​

​

 

[Bilal9]

Kolkata’s ‘mini Bangladesh’ suffers Rs1,000 crore losses after a year of anti-Bangladesh policies​

After halting visas, banning Bangladeshi patients from hospitals, restaurants and hotels, the consequences linger​

A deserted look of Marquis Street in Kolkata. Photo: Salil Bera

Kolkata's "mini Bangladesh" has suffered up to Rs1,000 crore in losses after India's anti-Bangladesh sentiment surged in the wake of Sheikh Hasina's fall from power in August last year.

After Hasina fled to New Delhi, India stopped issuing visas for Bangladeshis seeking to travel to the neighboring country, including medical visas. The JN Ray Hospital in Kolkata even declared that it would no longer treat Bangladeshi patients, while the All Tripura Hotel and Restaurant Owners' Association announced that Bangladeshi citizens would no longer be allowed to stay in hotels in that state.

A year later, the consequences continue to linger, reports the Times of India (TOI).

Kolkata used to be a bustling hub for Bangladeshi tourists, travelling for medical treatments and business, but all would eventually lead to one location: New Market's Clock Tower, flanked by Free School Street and Marquis Street.

This spot – locally known as "mini Bangladesh" has long been a favorite of Bangladeshi tourists. It offers affordable hotels and eateries serving "Opaar Bangla" cuisine (food and dishes from Bangladesh), and is close to major railway stations and bus terminals, while providing access to medical facilities.

While a conservative estimate by several traders' associations pegs the losses faced by "mini Bangladesh" in one year at over Rs1,000 crore, many say the actual numbers may be a lot more.

"Business from hotels, eateries, retail, travel agents, forex, medical care, and transport is worth Rs3 crore daily. If we factor in the losses in New Market and Burrabazar, it will cross Rs.5,000 crore," Hyder Ali Khan, general secretary of the Free School Street Traders' Association, told TOI.

Several businesses in the area have either shut shop or are focusing on locals. "Even a year ago, multiple buses would arrive with tourists at the same time, making parking difficult. Today, several days pass by without a single tourist arriving," said Prabir Biswas, manager of a Marquis Street travel company.

Bangladeshi customers, who used to be the main buyers, are hardly present in Kolkata markets now. Photo taken at Nakhoda Mosque area in Kolkata. Photo: Bloomberg

Eateries, currency exchange biz, homestays most affected

Currency exchange businesses dealing in Bangladeshi taka now lie dormant.

Mohammad Intezar, secretary of the Currency Exchangers Association at Marquis Street, said they are struggling to stay afloat. "We were completely dependent on Bangladeshi tourists."

According to traders, nearly 40% of the area's small and mid-level restaurants have closed shop since the crisis began. Several big eateries are now operating on shoestring budgets.

"Business has dropped to 20% and it's becoming unviable for most of us. We are hanging on somehow, waiting for a turnaround," NC Bhowmik, owner of Radhuni Restaurant, told TOI.

Hasina's fall in a mass uprising last year and India's reaction was actually a double whammy for the area's businesses, first copping a body blow during the Covid-19 pandemic.

"Expecting a boom after the pandemic, many of us had invested heavily. We even took loans to renovate and modify our businesses," said the younger brother of a popular Marquis Street eatery owner. "The business was doing well before this turmoil.

"My elder brother has fallen sick because of this stress. We have to pay EMIs of Rs1.5 lakh, and there's barely any income," he added.

Meanwhile, beyond big businesses, the informal economy built around tourism influx – home-cooked food providers, homestay operators, tour guides – has crumbled.

Hundreds of locals, who worked as hotel staffers, cooks, drivers and in retail shops, have been badly hit.

"I bought two commercial vehicles when demand surged after the pandemic. The business was flourishing, and I often had to turn away customers.

"Now I barely get five to six bookings a month – and that too from locals who don't want to pay as much. I have to pay EMIs," said Elliot Road resident Farhan Rasul.

 

[Saif]

Border frictions and rising trade costs

The two neighbouring countries of Bangladesh and India share a land border of approximately 4,096 kilometres (2,545 miles), making it the fifth-longest international land border in the world. Under ideal circumstances, such geographic proximity should facilitate trade between the two countries by l

thefinancialexpress.com.bd

Border frictions and rising trade costs
The impact of recent port access restrictions between Bangladesh and India

Mohammad Abdur Razzaque and Syful Islam
Published :
Aug 03, 2025 22:46
Updated :
Aug 03, 2025 22:46

The two neighbouring countries of Bangladesh and India share a land border of approximately 4,096 kilometres (2,545 miles), making it the fifth-longest international land border in the world. Under ideal circumstances, such geographic proximity should facilitate trade between the two countries by lowering transportation costs and promoting intra-industry trade, particularly given the likelihood of similar consumer preferences shaped by a shared history and broadly comparable development trajectories. In reality, however, bilateral trade relations have been characterised by recurring restrictions, especially concerning cross-border land-based trade flows. Most recently, bilateral trade has suffered a serious setback, as both countries imposed restrictions affecting trade through key land ports.

The border traverses several Indian states, including West Bengal, Assam, Meghalaya, Tripura, and Mizoram. In April 2025, Bangladesh imposed a ban on the import of Indian yarn through all land ports. Citing the need to protect the domestic spinning sector, Bangladeshi authorities justified the measure; however, it disrupted well-established supply chains that had allowed yarn to be delivered within 2-5 days via land, in contrast to much longer and more expensive seaport routes. In response, in May 2025, India's Directorate General of Foreign Trade (DGFT) introduced land port restrictions on approximately US$ 798?million worth of imports from Bangladesh-accounting for around 34 per cent of total bilateral imports from Bangladesh-including ready-made garments, processed foods, plastics, jute products, and other items. These products were barred from entering India's northeastern states via land ports and redirected to designated seaports, such as Kolkata and Nhava Sheva.

These developments point to a broader pattern of border-induced trade frictions: closure of major land trade corridors, disruption of efficient and time-sensitive supply chains, increased logistics costs, and delayed shipments.

This paper seeks to estimate the trade and freight cost implications of the recent bilateral land port restrictions between Bangladesh and India. Using Bangladesh Customs data, the analysis first quantifies the volume and composition of affected trade flows. It then draws on the UNCTAD Trade and Transport Dataset to estimate the likely increase in freight costs incurred by exporters and importers if forced to shift to alternative transport modes, thereby assessing the broader economic burden resulting from the disruption of established overland trade routes.

GEOGRAPHICAL BORDERS, TRADE FLOWS AND RESTRICTIONS: It is well established in international trade literature that national borders impose substantial and measurable costs on cross-border trade flows-costs that go beyond those associated with geographic distance. These border-related trade frictions arise from regulatory, administrative, and currency-related barriers, as well as broader institutional and cultural differences. McCallum's seminal study (1995) demonstrated that trade between Canadian provinces was, on average,?21 times higher than trade between Canadian provinces and United States (US) states, even after controlling for income and distance. This so-called "home bias" has since been interpreted as reflecting both formal and informal border barriers. Subsequent studies have refined these estimates using more sophisticated methods, such as structural gravity models with multilateral resistance terms, and have continued to find persistent and significant border effects, albeit smaller in magnitude (Havranek & Irsova, 2017; Requena & Llano, 2010). Moreover, when restrictions are placed not only on the existence of a border but also on the type and location of border crossings (e.g., restricting goods to specific ports or prohibiting land routes in favour of seaports), trade costs inevitably increase.

In 2024, bilateral trade between India and Bangladesh amounted to approximately US$?14?billion, with Bangladesh exporting US$?2?billion and importing US$?11.5?billion. The trade balance has historically favoured India, although Bangladesh, as a member of the South Asian Free Trade Area (SAFTA) and by virtue of its least developed country (LDC) status, has benefited from duty-free access for most of its exports to the Indian market. Bangladeshi traders, however, have long raised concerns over a range of non-tariff barriers (NTBs) imposed by Indian authorities. These include stringent product standards and certification requirements, the application of anti-dumping duties and countervailing measures on specific Bangladeshi goods, and procedural delays at ports of entry (Rahman 2019). Inadequate infrastructure and inefficient management at land ports also continue to be among the most significant trade barriers affecting businesses on both sides.

Of Bangladesh's total exports to India-valued at USD?2,357?million in 2022 (Figure 1)-more than three-quarters, or US$?1,774?million, were routed through land ports. Following the imposition of recent policy restrictions, US$?798?million, representing approximately 45 per cent of current land-port exports (or nearly 34 per cent of total exports to India), will need to be rerouted via sea or air. Notably, approximately 70 per cent of these affected land port exports, by value, are apparel products (Figure 2). Meanwhile, only US$ 4.1 million of apparel exports by air transport will now be restricted, which is 0.5 per cent of the total restricted exports.

Apparel items from Bangladesh are now strictly barred from entering through any Land Customs Station (LCS) and can only enter through the Nhava Sheva and Kolkata seaports. Non-apparel products subject to restrictions are not allowed through certain LCS. The restricted Bangladeshi products are barred from entering India through any Land Customs Station (LCS) or Integrated Check Post (ICP) located in Assam, Meghalaya, Tripura, and Mizoram; and LCS Chengrabandha and Fulbari in West Bengal. As shown in Figure 3, except for apparel items (as under Harmonised System of Classification codes of HS 61 and HS 62), none of the restricted export items have a share of more than 1 per cent of total exports to India. Therefore, the apparel sector in particular will be affected in terms of increased freight costs due to the change in mode of transport. The time to reach the market will also increase considerably.

On the other side, Bangladesh imported US$ 4 billion worth of yarn from India in 2022, with 62 per cent of the imports arriving through the seaport (Figure 4). That is, US$ 1.51 billion (37.15%) worth of yarn imports are subject to the restrictions imposed by Bangladesh that will require those yarns to be brought through seaports.

To be continued.....................​