India-Bangladesh Trade Route Curbs Spark Regional Supply Chain Concerns

• 21 May 25

India-Bangladesh Trade Route Curbs Spark Regional Supply Chain Concerns

India has imposed temporary restrictions on key trade routes connecting to Bangladesh, raising concern across regional industries reliant on uninterrupted cross-border logistics. The curbs, introduced primarily for security reviews and infrastructure upgrades, are affecting major checkpoints such as the Petrapole-Benapole corridor one of South Asia’s busiest land ports.

Key Developments:

• Increased Clearance Time: Traders report long queues of goods-laden trucks on both sides of the border, resulting in logistical delays and increased demurrage.

• Impact on Critical Sectors: Industries including textiles, FMCG, automotive parts, and agriculture are experiencing disruptions in supply timelines.

• Port Infrastructure Pressure: Authorities are reportedly working on road maintenance and realignment of customs processes, adding to the bottlenecks.

• Trade Volume Affected: As per estimates, over 500 trucks cross daily at Petrapole, handling nearly 80% of bilateral trade. The slowdown has created a backlog and uncertainty in contractual deliveries.

Broader Economic Implications:

The ongoing situation is expected to influence regional pricing, input availability for manufacturing units, and export/import planning for Indian and Bangladeshi businesses. Experts caution that if the issue persists, it could marginally impact Q2 trade balances and supply chain costs in select sectors.

What to Watch:

• Government updates on route clearance timelines

• Alternate border points being considered for diversion

• Industry response in sectors like garments and electronics

• Bangladesh’s import dependency recalibration

This remains a developing situation. Traders and logistics professionals are advised to monitor official notifications and assess alternative routing strategies to minimize business disruption.