Desk: In a significant geopolitical move, India has withdrawn the transshipment facility granted to Bangladesh for exporting goods to West Asia, Europe, and other countries via Indian ports and airports. The Central Board of Indirect Taxes and Customs (CBIC) issued a notification on Tuesday, cancelling the facility—which had been operational since 2020—with immediate effect.
The decision follows controversial remarks made by Mohammad Yunus, the head of Bangladesh’s interim government, during a recent visit to China. Yunus described India’s northeastern states as “landlocked” and overly reliant on Bangladesh for maritime access. In response, India clarified that this decision will not affect Bangladesh’s exports to Nepal and Bhutan through Indian territory, citing obligations under World Trade Organization (WTO) guidelines to facilitate trade for landlocked countries.
Continued Exports to Nepal and Bhutan Allowed
The move comes just days after Yunus suggested strengthening economic ties with China and highlighted the geographical dependence of India’s northeastern states on Bangladesh. India emphasized that while the broader transshipment facility has been revoked, Bangladesh will still be allowed to use Indian ports and airports for exporting goods to Nepal and Bhutan.
India and Bangladesh had signed a transit agreement in 2020, which was formalized in 2022. Foreign Ministry spokesperson Randhir Jaiswal stated that congestion at Indian ports and airports due to the facility was impacting domestic exports, with logistical delays and higher costs becoming a significant concern. The transshipment privilege was officially revoked starting April 8.
Use of Indian Infrastructure
For years, Bangladesh had been using various Indian ports and airports to facilitate exports to regions such as West Asia and Europe. Jaiswal reaffirmed that the move will not affect goods shipped from Bangladesh to Nepal or Bhutan via Indian territory.
During a recent event in China, Yunus remarked that the northeastern states of India are “landlocked” and dependent on Bangladesh for access to the sea. The CBIC notification formally rescinded the transshipment agreement following those comments.
Strained Bilateral Ties
The decision also follows tensions over a meeting between Yunus and Indian Prime Minister Narendra Modi during the BIMSTEC summit in Bangkok on April 4. Indian officials were reportedly displeased with statements released by Dhaka, especially those referencing minority rights violations and a request for the extradition of former Bangladeshi Prime Minister Sheikh Hasina.
According to sources, India considered Bangladesh’s statement about the Yunus-Modi meeting “politically motivated and misleading.” Yunus’ press secretary, Shafiqul Alam, further stirred controversy with a Facebook post suggesting that the Bangladeshi interim government had requested Hasina’s extradition and that Modi’s response was “not negative.”
Concern Over Minority Attacks
Relations between India and Bangladesh have deteriorated further amid rising incidents of violence against minorities—especially Hindus—in Bangladesh. India has so far not responded to the request for Hasina’s extradition, and sources note India’s growing concerns about the interim government’s failure to protect minorities.
During their meeting in Bangkok, Modi reportedly raised the issue of minority safety, urging the Bangladeshi leadership to take concrete steps to ensure their protection.
Teesta River Project and China
India also expressed unease over Bangladesh’s welcoming of China’s participation in the Teesta River development project. Randhir Jaiswal noted that India and Bangladesh share 54 rivers, including the Ganga and Teesta, and that any discussions on river-related cooperation should take place within the framework of the existing Joint Rivers Commission, assuming the overall bilateral atmosphere remains conducive.