India ends transshipment facility for Bangladesh, effective April 8, 2025: This facility allowed Bangladeshi exports to transit through Indian ports and airports.
Reasoning:
Congestion: MEA cited significant congestion at Indian ports and airports due to the facility, hindering Indian exports.
Industry Pushback: The Apparel Export Promotion Council (AEPC) lobbied for the removal, arguing it favored Bangladesh and hurt Indian exporters in the competitive RMG sector.
China Factor: Strategic concerns arose after a Bangladeshi official’s remarks in China describing Bangladesh as the “guardian of the ocean” for Northeast India, potentially facilitating Chinese influence near the Siliguri Corridor. Invitation of Chinese investment in Lalmonirhat Airbase was also noted.
Impact on Bangladesh: Higher export costs and potential delays for its USD 50 billion export sector, primarily RMG, affecting global competitiveness.
Impact on India: Signals strain in relations with Bangladesh and potential conflict with WTO’s GATT Article V and TFA Article 11, which ensure freedom of transit for landlocked nations.
Alternative Perspective: Some view the move as a response to Bangladesh’s growing ties with China, particularly near the strategically sensitive Siliguri Corridor (Chicken’s Neck).
MEA Clarification: The withdrawal doesn’t impact Bangladesh’s exports to Nepal or Bhutan transiting through India.
CBIC Notification: Officially rescinds the circular permitting transhipment of Bangladesh export cargo through Indian Land Customs Stations to ports/airports.
