India-Bangladesh Transshipment Facility:
India revoked the 2020 transshipment facility allowing Bangladesh to use its territory for third-country exports, citing logistical and strategic concerns. The move has significant implications for trade and regional diplomacy.
- India allowed Bangladesh to use its Land Customs Stations (LCSs) and ports to send export cargo to third countries like Nepal, Bhutan, and Myanmar.
- It aimed to reduce transportation costs and improve logistical efficiency for Bangladesh’s key export sectors, particularly readymade garments (RMG).
- Cargo was routed via Indian ports (e.g., Kolkata, Delhi Airport) to enable faster global access, especially for landlocked regions.
- Seen as a goodwill gesture enhancing regional trade integration under India’s “Neighbourhood First” policy.
India Withdrew the Facility : Reason
- The Apparel Export Promotion Council (AEPC) pushed for withdrawal, citing competition with Bangladeshi textile exports, Rising freight costs and congestion at Indian ports and airports, particularly Delhi, impacted India’s own exporters,Bangladesh’s growing proximity to China and remarks undermining India’s strategic position in the northeast added to concerns,Bangladesh inviting Chinese investments near India’s Siliguri Corridor (e.g., Lalmonirhat airbase) raised red flags, The move could be interpreted as a diplomatic message to discourage geopolitical drift away from India’s influence.
