No end in sight to Dhaka's growing rhetoric, India ends trans-shipment facility for Bangladesh

Citing "significant congestion" at its airports and ports, India on Tuesday said that it has terminated a trans-shipment facility available to Bangladesh that allowed Dhaka to export cargo to third countries using Indian customs stations.

"The Transshipment facility extended to Bangladesh had over a period of time resulted in significant congestion at our airports and ports. Logistical delays and higher costs were hindering our own exports and creating backlogs. The facility, therefore, has been withdrawn w.e.f. April 8, 2025. To clarify, these measures do not impact Bangladesh exports to Nepal or Bhutan transiting through Indian territory." Randhir Jaiswal, spokesperson for the Ministry of External Affairs (MEA) said during a weekly media briefing in New Delhi on Wednesday.

The facility was introduced in June 2020 and the decision to withdraw it was made by the finance ministry's Central Board of Indirect Taxes and Customs.

"It has been decided to rescind the circular dated June 29, 2020, as amended with immediate effect. Cargo already entered into India may be allowed to exit the Indian territory as per the procedure given in that circular," a notification issued by the Central Board of Indirect Taxes and Customs (CBIC) on April 8 stated.

The facility introduced by New Delhi was aimed at enhancing regional connectivity and promoting trade between Bangladesh and third countries by using India as a transit corridor.

"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," Assam Chief Minister Himanta Biswa Sarma posted on X.

The move comes after controversial statements made by Muhammad Yunus, the Chief Advisor of the interim government in Bangladesh, during his recent visit to China.

"The seven states of India, the eastern part of India, are called the Seven Sisters. They are a landlocked region of India. They have no way to reach out to the ocean. We are the only guardian of the ocean for all this region. So this opens up a huge possibility. This could be an extension of the Chinese economy," Yunus said during a high-level roundtable discussion on sustainable infrastructure and energy in Beijing.

Both countries had also operationalized the Agreement for the usage of Chittagong and Mongla Ports in 2023 that allows India to avail the services of these ports in Bangladesh for transit cargo between Northeast and mainland India and significantly reduced the cost and time of transportation.

India on Wednesday also again raised concerns over the persecution of minorities in Bangladesh, hoping that the interim government in the country led by Yunus will take strong action against the perpetrators of violence.

Last week, Prime Minister Narendra Modi had raised the issue of safety and security of minorities in Bangladesh, including Hindus, during his meeting with Yunus, held on the sidelines of the BIMSTEC Summit in Bangkok.

"On the question of minorities, this particular issue came up for discussion. We have conveyed our concerns regarding the treatment of minorities and the kind of violence that has happened against them. We have been raising this in several of our conversations, including our meeting in Bangkok, that this violence and atrocities against minorities cannot simply be wished away or dismissed as political reasons or media agitations. We hope that the Bangladesh government will take strong action against those responsible for these atrocities," said Jaiswal.

The Bangkok meeting was the first in-person meeting between the two leaders since the ouster of the Awami League government led by former Prime Minister Sheikh Hasina and formation of the interim government under the leadership of Yunus in the neighbouring country, last August.

During the discussions, Prime Minister Modi had urged that any rhetoric that vitiates the environment is best avoided and expressed his conviction that all issues of mutual interest between the two countries would continue to be addressed and resolved bilaterally through constructive discussions in the interest of the long standing bilateral relationship between the two countries.

"Prime Minister also underlined India's concerns related to the safety and security of minorities in Bangladesh, including Hindus, and expressed his expectation that the government of Bangladesh would ensure their security, including by thoroughly investigating all cases of atrocities committed against them," said Foreign Secretary Vikram Misri after the BIMSTEC Summit.

During the meeting, PM Modi reiterated India's support for a democratic, stable, peaceful, progressive and inclusive Bangladesh. He also underlined that India believes in a people-centric approach to the relationship and highlighted the cooperation between the two countries over a long period of time that has delivered tangible benefits to people of both countries.

"In this spirit, he once again underlined to Prof Yunus India's desire to forge a positive and constructive relationship with Bangladesh based on spirit of pragmatism. Prime Minister also urged that any rhetoric that vitiates the environment is best avoided.

"On the border, strict enforcement of the law and prevention of illegal border crossings, especially at night, is necessary for maintaining border security and stability. There are a number of mechanisms between the two countries and these mechanisms could meet as appropriate to review and take forward our ties," remarked Foreign Secretary Misri.