India has revoked the transshipment facility that allowed Bangladesh to export goods to third countries through Indian land borders. Introduced in 2020, this route enabled the use of Indian ports and airports, significantly reducing shipping costs for Bangladeshi exporters.
The Indian government stated the move was made due to logistical delays and rising costs that hurt its own export competitiveness. While the policy change won’t affect trade to Nepal or Bhutan, it’s a major blow for Bangladesh’s garment industry, which heavily depended on this route for access to markets like the Middle East and Europe.
Experts in Dhaka fear this will push up export costs and slow delivery times. Trade analysts also point out that the decision may challenge WTO regulations, which uphold transit rights for landlocked nations. Diplomats from both sides are expected to meet in the coming weeks to reassess the situation.
