India ends transshipment facility for Bangladesh exports

NEW DELHI: India has disallowed transshipment of cargo from Bangladesh to third countries, dealing a blow to Dhaka exporting apparel through air freighters, largely from Delhi.

Global brands such as Zara, which use the route to meet their international need, will have to rework their sourcing strategy. The customs circular, issued Tuesday, said cargo that had already entered India would be allowed to be shipped out. Confirming the development that comes amid the strife in India-Bangladesh ties, MEA said the transshipment used to cause congestion at Indian airports and ports, but added the order won't hit Dhaka's exports to Nepal and Bhutan passing through India. tnn

The trans-shipment facility extended to Bangladesh had over a period of time resulted in significant congestion at our airports and ports. Logistical delays and higher costs were hindering our own exports and creating backlogs. The facility, therefore, has been withdrawn, w.e.f. April 8, 2025. To clarify, these measures do not impact Bangladesh exports to Nepal or Bhutan transiting through Indian territory," said MEA spokesperson Randhir Jaiswal, adding India needs to create space for its own exports.

While exporters had petitioned govt last year, the customs notification came days after Muhammad Yunus made controversial remarks in China, saying India's northeastern states, which share a nearly 1,600-km border with Bangladesh, were "landlocked", prompting a strong rebuttal from PM Modi.

"India has always supported the Bangladesh cause. India allows one-way zero tariff access to Bangladesh goods (all except alcohol and cigarettes) to the vast Indian market for the last two decades. However, Bangladesh plans for creating a strategic base near Chicken's Neck area with China's help may have prompted this action. Bangladesh has invited Chinese investment to revitalise the air base at Lalmunirhat near India's Siliguri Corridor," said trade research body GTRI.

Industry here said this will help Indian players. "It was the Apparel Export Promotion Council's long-standing demand for stopping trans-shipment of Bangladeshi cargo, meant for shipments to third countries, through Indian ports, which has now been accepted. This will help in rationalisation of freight rates resulting in less transportation cost to the Indian exporters besides decongesting the airports leading to the shorter transit time to ship the goods," said the industry body's secretary general Mithileshwar Thakur.

The MEA spokesperson also reiterated India's demand that Bangladesh probe cases of violence against minorities, saying this was an issue that PM Modi strongly raised with chief advisor Muhammad Yunus during their recent meeting in Bangkok. "This is not an issue that Bangladesh can wish away by calling it media exaggeration," said Jaiswal. Yunus had said in the meeting that most of the cases of atrocities committed on minorities were fake news.


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