India Withdraws Transshipment Facility for Bangladesh

On 9th April 2025, India officially withdrew the transshipment facility extended to Bangladesh, citing rising congestion at its ports and airports.

• The Ministry of External Affairs clarified that this move is logistical in nature and not intended to impact Bangladesh’s trade with Nepal or Bhutan.

Reasons for Withdrawal

• The transshipment of Bangladeshi goods via Indian land, air, and sea routes had increasingly led to severe congestion at Indian infrastructure points.
• Resulting logistical delays and cost escalations were affecting India’s own export performance.
• The facility, which began in June 2020, allowed Bangladeshi cargo to pass through India to access third-country markets like Nepal, Bhutan, ....