India has terminated a trans-shipment facility that allowed Bangladeshi exports to move through Indian territory en route to third countries, amid rising geopolitical tensions and Dhaka’s overtures to Beijing.
The facility, introduced in June 2020, had enabled Bangladesh to send cargo via Indian Land Customs Stations to ports and airports for onward shipment to nations including Bhutan, Nepal and Myanmar, reports the New Indian Express.
In an official circular on 8 April, the Central Board of Indirect Taxes and Customs (CBIC) stated: “It has been decided to rescind... circular... dated 29/06/2020, as amended, with immediate effect. Cargo already entered into India may be allowed to exit Indian territory as per the procedure given in that circular.”
The cancellation, effective immediately, curtails Bangladeshi access to Indian infrastructure at a time when global trade faces turbulence following sweeping US tariffs on several nations, including India and Bangladesh.
Notably, Indian exporters—particularly in the textile and apparel sectors—had long lobbied for this rollback, citing diminished competitiveness due to Bangladesh’s usage of Indian cargo capacity.
The move comes close on the heels of pointed remarks made by Chief Adviser Muhammad Yunus during his 26–29 March visit to China.
Speaking in Beijing, Yunus described India’s northeastern region as “a landlocked area with no access to the ocean,” while asserting that Bangladesh was the “only guardian of the ocean in the region.”
He further urged China to deepen its economic footprint in Bangladesh, terming the maritime access a strategic opportunity for Beijing.
On 4 April, Chief Adviser Yunus and Indian Prime Minister Narendra Modi met on the sidelines of the BIMSTEC Summit in Bangkok—a meeting that now appears overshadowed by growing tensions and public posturing.
Trade analysts view India’s decision as a potential blow to Bangladesh’s export logistics.
Indian exporters, however, have welcomed the decision.
“Now we will have more air capacity for our cargo,” said Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO).
“Exporters had complained about reduced space due to the trans-shipment facility extended to Bangladesh.”
For now, Bangladesh will have to chart a new course—both politically and logistically—as regional dynamics shift and Delhi signals a harder line on its eastern flank.
