New Delhi— Citing “significant congestion” at its airports and ports, India on Tuesday announced the termination of a transshipment facility previously extended to Bangladesh, which allowed Dhaka to export cargo to third countries via Indian customs stations.
“The transshipment facility extended to Bangladesh had, over time, caused significant congestion at our airports and ports. Logistical delays and rising costs were hindering our own exports and creating backlogs. As a result, the facility has been withdrawn effective April 8, 2025. To clarify, this move does not affect Bangladesh’s exports to Nepal or Bhutan transiting through Indian territory,” said Randhir Jaiswal, spokesperson for the Ministry of External Affairs (MEA), during a weekly media briefing in New Delhi on Wednesday.
The facility, introduced in June 2020, was officially withdrawn through a decision by the Central Board of Indirect Taxes and Customs (CBIC) under the Finance Ministry.
“It has been decided to rescind the circular dated June 29, 2020, as amended, with immediate effect. Cargo that has already entered India may exit Indian territory as per the procedure outlined in the original circular,” read the CBIC notification issued on April 8.
The transshipment facility was initially designed to boost regional connectivity and promote trade between Bangladesh and third countries by utilizing Indian transit routes.
Commenting on the move, Assam Chief Minister Himanta Biswa Sarma wrote on X, “India’s decision to revoke the transshipment facility for Bangladesh underscores Prime Minister Narendra Modi Ji’s unwavering commitment to safeguarding national interests and the security of the Northeast region. This decisive action reflects the government’s firm stance on protecting India’s strategic and economic priorities.”
The decision follows controversial remarks made by Muhammad Yunus, Chief Advisor of Bangladesh’s interim government, during a recent visit to China.
“The seven states of eastern India are called the Seven Sisters. They are landlocked and have no access to the ocean. We are the only gateway to the sea for this region. This opens up a huge possibility—this could become an extension of the Chinese economy,” Yunus said during a high-level roundtable on sustainable infrastructure and energy in Beijing.
India and Bangladesh had operationalized an agreement in 2023 for the use of Bangladesh’s Chittagong and Mongla ports, allowing India to use these facilities for transit cargo between its Northeast and mainland regions—significantly reducing transportation time and costs.
India also reiterated its concern on Wednesday about the treatment of minorities in Bangladesh, expressing hope that the interim government led by Yunus would take concrete steps against perpetrators of violence.
Last week, Prime Minister Narendra Modi raised the issue of minority safety—including Hindus—during a meeting with Yunus on the sidelines of the BIMSTEC Summit in Bangkok.
“On the question of minorities, this issue came up for discussion. We conveyed our concerns regarding the treatment of minorities and the violence they’ve faced. We have raised this issue in multiple conversations, including during our meeting in Bangkok. These atrocities cannot be dismissed as mere political issues or media exaggerations. We hope the Bangladeshi government will take strong action against those responsible,” Jaiswal said.
The Bangkok meeting marked the first in-person interaction between Modi and Yunus since the fall of the Awami League government, led by former Prime Minister Sheikh Hasina, and the installation of the interim government in August last year.
During the meeting, Prime Minister Modi emphasized that rhetoric which inflames tensions should be avoided. He expressed confidence that all bilateral issues would continue to be addressed through constructive dialogue in the interest of maintaining the longstanding relationship between the two nations.
“Prime Minister also underscored India’s concerns about the safety and security of minorities in Bangladesh, including Hindus, and expressed his expectation that the Bangladeshi government would ensure their protection by thoroughly investigating all incidents of violence,” said Foreign Secretary Vikram Misri following the BIMSTEC Summit.
Modi reaffirmed India’s support for a democratic, stable, peaceful, progressive, and inclusive Bangladesh. He highlighted the historically strong cooperation between the two countries, which has yielded tangible benefits for both populations.
“In this spirit, he reiterated to Prof. Yunus India’s desire to build a positive and constructive relationship with Bangladesh grounded in pragmatism. The Prime Minister also urged restraint in rhetoric that could damage bilateral ties.
“Regarding border issues, strict enforcement of the law and prevention of illegal crossings—particularly at night—are essential to maintaining security and stability. Various mechanisms exist between the two countries, and these can be activated as needed to review and advance our cooperation,” Misri added. (Source: IANS)
