India Ends Transshipment Facility for Bangladesh, Raising Concerns for Dhaka’s Exporters

10-Apr-2025 04:42 PM

Kolkata: India has officially withdrawn the transshipment facility that allowed Bangladeshi exports to pass through Indian ports en route to third countries.

The move is expected to significantly impact Bangladesh’s trade flow, especially at a time when congestion at Chittagong and Mongla ports had made Indian ports a preferred alternative for Dhaka-based exporters.

The Indian government cited increasing congestion at its own ports due to the rising inflow of Bangladeshi cargo, which it claims has been delaying Indian shipments and affecting local exporters. Indian exporters, particularly those dealing in textiles, had reportedly been lobbying for this move.

Introduced in June 2020, the facility allowed Bangladeshi goods to reach countries like Nepal, Bhutan, and Myanmar via Indian land customs stations, ports, and airports.

Its withdrawal comes after nearly five years and is seen as a strategic move in light of the recent strain in India-Bangladesh relations, with Dhaka’s growing tilt towards China and Pakistan noted by analysts.

This decision is likely to hit Bangladesh’s export performance and logistics costs, complicating its access to regional markets. The development also reflects a broader shift in geopolitical and trade priorities in the region.