India Halts Bangladesh Trans-shipment: Impacts on Regional Trade Dynamics

India has terminated the trans-shipment facility for Bangladesh's export cargo using Indian customs routes. The change is expected to benefit Indian exporters but poses challenges for Bangladesh's logistics and trade, especially affecting landlocked countries like Bhutan and Nepal that rely on this route.

The Indian government has decided to terminate the trans-shipment facility that allowed export cargo from Bangladesh to reach third countries via Indian land customs, citing a new circular.

The facility, initially provided in June 2020, benefited Bangladeshi exports to nations such as Bhutan, Nepal, and Myanmar. However, the decision to withdraw comes amid demands from Indian exporters to boost domestic trade capacity.

While the move will support several Indian sectors like apparel and footwear, experts warn of potential disruptions for Bangladesh's export logistics and its trade relations with landlocked neighbors.