India has rescinded the transshipment facility provided to Bangladesh for exporting goods to third countries via Indian ports and airports. The decision, which occurred on April 8, was confirmed by the Ministry of External Affairs and the Central Board of Indirect Taxes and Customs (CBIC), concerning logistical congestion and delays at Indian ports as key reasons behind the withdrawal.
The transshipment arrangement has been in effect since June 2020 and has enabled Bangladesh to route exports to nations like Nepal, Bhutan, and Myanmar to be funneled through India. However, India’s Foreign Ministry spokesperson Randhir Jaiswal clarified during a weekly press briefing that these facilitations were becoming counterproductive due to mounting backlogs and congestion at logistical centers, hindering India’s exports.
While India has revoked the facility for Bangladeshi exports via India to third countries, it has retained the transit permission for Bangladesh’s exports to Nepal and Bhutan. Jaiswal reassured that this decision would not affect India’s exports to Bangladesh.
The development comes amid diplomatic frictions between the two neighboring countries. Tensions have escalated since the expel of Prime Minister Sheikh Hasina’s government in Bangladesh following student-led protests. India has since declined to extradite the former leader, despite repeated appeals from Bangladesh’s interim government.
Recent statements by Bangladesh’s interim Chief Advisor, Mohammad Yunus, have further strained the relationship with India. During his visit to China, Yunus referred to India’s northeastern states, known as the “Seven Sisters,” as landlocked and called Bangladesh the “sole custodian of the sea” for the region. He also invited China to enhance economic activities by using Bangladesh as a maritime gateway, which prompted sharp criticism from Indian leaders, including Assam Chief Minister Himanta Biswa Sarma.
Sarma called Yunus’s comments “objectionable and reprehensible,” warning of underlying strategic threats to India’s Chicken Neck corridor the narrow Siliguri corridor connecting Northeast India to the mainland. Former diplomats and experts have condemned Yunus’s remarks, labeling them diplomatically irresponsible and potentially destabilizing.
Amidst these developments, Prime Minister Narendra Modi recently met Mohammad Yunus on the sidelines of the BIMSTEC summit in Bangkok. During the meeting, PM Modi reportedly raised concerns over the safety of minorities, particularly Hindus, in Bangladesh. Meanwhile, Yunus requested India to restrain Sheikh Hasina from making what he termed “provocative statements” while residing in India.
India has reaffirmed its willingness to discuss various bilateral concerns with Bangladesh, including the long-pending Teesta water-sharing issue. Spokesperson Jaiswal stated that India remains open to discussions through existing mechanisms like the Joint River Commission but emphasized the need for a conducive environment.
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