Businesses are bracing for possible impact after neighbours India and Bangladesh recently imposed tit-for-tat trade restrictions after months of verbal sparring.

Last month, Bangladesh restricted land imports of cotton yarn from India to shield local industries from cheaper imports.

Dhaka’s move came days after India abruptly stopped the transhipment facility it had offered Bangladesh to export its cargoes to third countries via its ports and airports, citing “congestion”.

Relations between the countries have soured since former Prime Minister Sheikh Hasina was ousted in August after massive protests. She is currently in exile in India and an interim administration headed by Nobel Peace Prize laureate Muhammad Yunus is in charge.