India has withdrawn the transshipment facility it had extended to Bangladesh, with the decision taking immediate effect. As a result, Bangladesh will no longer be able to use Indian ports, airports, or land customs stations to send export consignments to third countries.
The transshipment arrangement, which had been in place since June 2020, has been cancelled with immediate effect. Indian authorities said that Bangladeshi cargo currently inside Indian territory will be allowed a short window to exit the country, but no further transshipment will be permitted.
New Delhi said the decision was taken due to mounting pressure on Indian ports and logistics hubs, which had led to delays, higher costs, and operational challenges. According to Indian officials, these issues were increasingly affecting Indian exporters, prompting the government to prioritise domestic capacity, efficiency, and national interest.
India clarified that the move does not signal a retreat from regional cooperation. Transit facilities for Nepal and Bhutan will remain unchanged, indicating that the decision applies specifically to Bangladesh.
The timing of the decision has drawn attention. It comes amid heightened sensitivities following remarks by Bangladesh’s interim government chief Muhammad Yunus regarding India’s northeastern region. Assam Chief Minister Himanta Biswa Sarma welcomed the move, describing it as a “firm step to protect national interests” under the leadership of Prime Minister Narendra Modi.
The withdrawal is expected to increase Bangladesh’s export costs and force exporters to seek longer and more expensive alternative routes. India, on the other hand, is likely to gain operational relief in its ports and logistics network. The development underscores how trade routes in South Asia are shaped not only by economic considerations but also by strategic calculations.
