New Delhi [India]: India has officially withdrawn the transshipment facility previously extended to Bangladesh, citing increasing logistical bottlenecks and port congestion, the Ministry of External Affairs (MEA) announced on Wednesday.
During the weekly press briefing, MEA spokesperson Randhir Jaiswal stated,
“The transshipment 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The facility, which allowed Bangladeshi export-import cargo to transit through Indian ports, was withdrawn effective April 8, 2025. However, Jaiswal clarified that the decision would not impact Bangladesh’s exports to Nepal or Bhutan transiting through Indian territory.
The move follows a series of engagements between Indian and Bangladeshi officials. Notably, a 13-member delegation from Bangladesh, led by S M Mostafa Kamal of the Ministry of Shipping, visited India in July 2024 to explore transshipment opportunities through Indian ports on the East Coast.
India had earlier proposed facilitating Bangladeshi cargo under the existing Coastal Shipping Agreement and the Protocol on Inland Water Transit and Trade (PIWTT). During discussions, the Indian side presented data showcasing benefits for Bangladeshi exporters in using Indian ports instead of traditional transshipment hubs like Colombo, Singapore, and Port Klang. Despite these efforts, the facility’s rising impact on India’s logistics appears to have prompted its suspension.
🔺 Broader Bilateral Issues
The MEA spokesperson also raised critical concerns about the treatment of minorities in Bangladesh and the long-pending Teesta Water Treaty.
“We have conveyed our concerns regarding the treatment of minorities, the kind of violence that has happened against them… These violence and atrocities cannot be wished away,” said Jaiswal, urging the Bangladeshi government to take firm action.
On water-sharing talks, Jaiswal reiterated India’s commitment to dialogue through the Joint Rivers Commission, a bilateral mechanism to manage the 54 rivers shared by the two countries.
“We are ready to discuss all issues provided that they are mutually agreed upon and that the overall environment is conducive,” he added.
Last week, Prime Minister Narendra Modi met Bangladesh Chief Adviser Muhammad Yunus on the sidelines of the BIMSTEC Summit in Bangkok. The Prime Minister expressed India’s continued support for a democratic, stable, peaceful, and inclusive Bangladesh and raised the issue of safeguarding minority communities, especially Hindus.
According to an MEA statement,
“Prime Minister highlighted that cooperation between the two countries has brought tangible benefits to the people of both countries. He underlined India’s desire to forge a positive and constructive relationship with Bangladesh based on pragmatism.”