India ends cargo transhipment for Bangladesh to third countries via its ports, citing congestion.
In a significant move affecting regional trade dynamics, India has discontinued the transhipment facility for Bangladeshi cargo destined for third countries, effectively halting a key channel used by Dhaka to export apparel via Indian airports, particularly from Delhi. The customs notification came into effect on April 8, 2025.
The decision, confirmed by MEA spokesperson Randhir Jaiswal, comes amid growing strains in India–Bangladesh ties. He stated that the transhipment practice was causing congestion at Indian ports and airports, disrupting logistical flows and leading to delays and higher costs for Indian exporters. However, the MEA clarified that the order will not impact Bangladeshi exports to Nepal and Bhutan, which continue to pass through Indian territory.
The move aligns with long-standing concerns raised by Indian exporters. Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC), noted that Indian stakeholders had for some time demanded an end to the transhipment arrangement for Bangladeshi cargo bound for third-country destinations.
The withdrawn facility had become a bottleneck in India’s own trade network, contributing to cargo backlogs and inefficient freight handling. With this step, India aims to ease internal port and airport pressure while reassessing its regional logistics commitments.
Source: Exim News
