India says ‘developments’ in Bangladesh played role in transshipment cancellation

“Please do have a look at the developments that have happened on the Bangladeshi side prior to us announcing these measures,” says MEA spokesperson

New Delhi has suggested that some “developments” in Bangladesh played a role in its decision to revoke a transshipment facility that had allowed Bangladeshi exports to pass through Indian ports.

Randhir Jaiswal, spokesperson for the Indian Ministry of External Affairs, said the decision was primarily logistical but suggested that “developments” in Bangladesh should also be considered in understanding the context.

Speaking at a media briefing on Thursday, he said: “We had taken that measure because of the congestion that we see at our ports and our airports.”

“But I would also remind you, please do have a look at the developments that have happened on the Bangladeshi side prior to us announcing these measures.”

Jaiswal, however, did not elaborate on the nature of these developments, nor did he cite any specific incident or official action taken by the Bangladeshi government.

According to the Indian daily The Hindu, the remarks came in response to a question regarding recent tensions in trade relations between the two neighbouring countries.

A report published last week in The Indian Express suggested that the decision was prompted by a statement made by Chief Advisor Muhammad Yunus, during a visit to Beijing.

While speaking at the BIMSTEC summit on Mar 28, Yunus told Chinese investors that Bangladesh played a crucial role in offering maritime access to India’s landlocked northeastern states, known collectively as the “Seven Sisters”.

“The seven states of India, in the eastern part of India, which are called the Seven Sisters... are landlocked areas of India. They have no way to the sea. We are the sole guardian of the sea for this region,” Yunus said.

On Apr 8, India’s Central Board of Indirect Taxes and Customs formally withdrew the transshipment facility, which had previously allowed Bangladeshi goods to be exported via Indian ports and airports.

The move has disrupted the supply chain for Bangladeshi garments and other goods bound for third countries, especially shipments routed through Delhi’s Indira Gandhi International Airport.

Responding to criticism, the Indian Ministry of External Affairs issued a statement emphasising the operational burdens the facility had placed on Indian infrastructure.

“The transshipment benefit extended to Bangladesh was causing significant congestion at our airports and seaports,” said the Indian statement.

“This led to delays, higher costs, and backlogs in our own export system. Therefore, the facility has been withdrawn effective from Apr 8, 2025.”

The ministry added, “To be clear, this decision does not affect goods moving from Bangladesh to Nepal or Bhutan via Indian territory.”

In a reciprocal move, Bangladesh’s National Board of Revenue announced on Tuesday the suspension of yarn imports from India through five land ports - Benapole, Bhomra, Sonamasjid, Banglabandha and Burimari.

When asked about Dhaka’s response, Jaiswal declined to comment on the matter during the same press conference on Thursday.

The Hindu, however, citing an unnamed Indian official, reported that New Delhi suspects the restriction on yarn imports was intended to pave the way for increased sourcing from Pakistan.

Relations between Bangladesh and India have grown increasingly strained since former premier Sheikh Hasina departed from office.

The interim government led by Yunus has accused Hasina of conspiring with Indian actors to destabilise Bangladesh, and has called for her extradition to face trial.