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News » India News » India withdraws transshipment facility for Bangladesh amid diplomatic tensions

India News

India withdraws transshipment facility for Bangladesh amid diplomatic tensions

NM Desk
Last updated: 9 April, 2025 9:11 PM
NM Desk
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PM Modi and Bangladesh Chief Adviser Muhammad Yunus meet in Thailand

New Delhi: In what is sure to be a huge blow to it’s neighbours, India has officially withdrawn the transshipment facility it had extended to Bangladesh for routing exports to the Middle East, Europe, and other destinations, with the exception of Nepal and Bhutan. The move comes off the back of rising diplomatic tension following controversial remarks made by Bangladesh’s interim government head Muhammad Yunus during a recent visit to China.

Yunus had remarked that India’s northeastern states, which share a 1,600-kilometre border with Bangladesh, are landlocked and dependent on Bangladesh for access to the sea. According to PTI, the statement did not sit well and was poorly received in New Delhi which has contributed to the decision to revoke the facility.

Randhir Jaiswal, the spokesperson for the External Affairs Ministry clarified that the transshipment facility had been causing logistical challenges for India. “The transshipment facility extended to Bangladesh had over a period of time resulted in significant congestion at our airports and ports.”  He also mentioned how the logistical delays and higher costs were hindering India’s own exports and creating backlogs, while stressing that the move does not impact Bangladeshi exports to Nepal or Bhutan that transit through Indian territory.

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The tension follows a meeting between Prime Minister Narendra Modi and Yunus on April 4 in Bangkok on the sidelines of the BIMSTEC summit. Disagreements emerged regarding Bangladesh’s public version of the talks, particularly relating to minority issues and a request for the extradition of former Prime Minister Sheikh Hasina.

Yunus’ press secretary had claimed in a Facebook post that the extradition request was discussed and India’s response was “not negative”—a characterisation Indian officials have described as “mischievous and politically motivated.”

PM Modi reportedly expressed serious concern over the safety of minorities, especially Hindus, in Bangladesh, and urged that rhetoric which vitiates bilateral relations should be avoided. Hasina, who fled Bangladesh in August last year, has since been residing in New Delhi.

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