India recently imposed trade restrictions on Bangladeshi garments and other goods, escalating tensions over political and economic relations.
The restrictions target Bangladesh’s key apparel sector and deny access to India’s northeast market.
This move follows Bangladesh’s interim leader, Mohammed Yunus, inviting Chinese access to India’s northeast during a visit to China in March 2025, which India found concerning.
The trade restrictions are likely to hurt Bangladesh's garment exports, but may not serve India’s strategic interests.
Bangladesh’s political instability and protests against the former government have led to a strained relationship with India, especially after Yunus’s administration warmed up to Pakistan.
New Delhi should focus on diplomatic efforts, engaging with other political parties in Bangladesh and advocating for early elections.
Using trade restrictions may worsen anti-India sentiment in Bangladesh and could lead to further instability in the region.
India must balance communicating its displeasure with maintaining relations with the current Bangladeshi administration until elections are held.
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