In a move likely to impact regional trade dynamics, India has withdrawn the transshipment facility granted to Bangladesh for its export cargo. The decision, effective from April 8, 2025, comes just days after Bangladesh’s Chief Adviser Muhammad Yunus voiced support for expanding China’s economic influence in Northeast India — a strategically sensitive region for New Delhi.

The announcement was made via a notification issued by the Central Board of Indirect Taxes and Customs (CBIC) on Tuesday evening.

Explaining the decision, Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal stated that the facility had led to significant congestion at Indian ports and airports, resulting in logistical delays, increased costs, and export backlogs. “The facility, therefore, has been withdrawn with effect from April 8, 2025,” he said.

However, the MEA clarified that the new measures will not affect Bangladesh’s exports to Nepal or Bhutan that transit through Indian territory.

This development is seen as a setback to Bangladesh’s export operations and may reshape trade routes in the region, especially in light of shifting geopolitical alignments.