Transshipment Tension: India Halts Bangladesh Cargo Route

Transshipment cargo from Bangladesh through India significantly increased in 2024-25. However, since April 9, India has revoked the transshipment facility, halting Bangladesh's third-country cargo via Petrapole. This decision affected ready-made garment exports destined for Western markets, impacting Bangladesh's trade heavily reliant on fast air freight routes.

Transshipment cargo from Bangladesh re-exported through India saw a substantial 46 per cent increase at West Bengal's Petrapole Land Port in 2024-25, according to official statistics.

Nevertheless, as of April 9, the Indian government has halted this facility, ceasing the entry of trucks from Bangladesh carrying cargo destined for third countries through the Petrapole border. This comes after India revoked the policy initiated in 2020, which allowed such transshipments.

The halt has critically affected Bangladesh's export sector, particularly impacting the ready-made garment industry, which relied heavily on India's transit routes for swift delivery to Western clients. The recent policy change poses a challenge amid global demand pressures.