In a significant move, India has terminated its transshipment facilities for Bangladeshi export cargo to third countries, a decision announced shortly after Bangladesh’s interim Chief Adviser Muhammad Yunus called for China’s economic expansion near India’s landlocked northeastern states. The announcement, made on April 8, 2025, by the Central Board of Indirect Taxes and Customs (CBIC), rescinds a 2020 circular that allowed Bangladeshi goods to transit through Indian ports and airports.
The decision is expected to disrupt Bangladesh’s trade with neighboring countries like Bhutan, Nepal, and Myanmar, as the streamlined route through India is no longer available. Indian authorities cited logistical delays, congestion at ports, and higher costs as reasons for the withdrawal. However, the timing of the move has raised questions about its connection to Yunus’ recent remarks during his visit to China.
Yunus had described Bangladesh as the “only guardian of the ocean” for India’s northeastern region and suggested that the area could serve as an extension of China’s economy. His comments, widely interpreted as an attempt to leverage Bangladesh’s strategic position, have drawn criticism from Indian political leaders and analysts.
The development marks a new strain in India-Bangladesh relations, which have already been under pressure following political changes in Dhaka. As trade logistics face potential disruptions, the decision underscores India’s strategic concerns and its response to regional dynamics involving China.
