India has imposed import restrictions on Bangladesh in response to Bangladesh's restrictions on Indian yarn exports and rice imports as well as growing ties with China.
The restrictions cover more than 40% of Bangladesh's exports to India, amounting to about $770 million.
Indian garment manufacturers are expected to benefit from these restrictions as they aim to increase production and reduce reliance on Bangladesh.
The restrictions also aim to curb the backdoor entry of duty-free Chinese fabrics into India through Bangladesh and focus on boosting local manufacturing in north-eastern States.