A new link of tension between India and Bangladesh was added when India suddenly canceled the transshipment facility given to Bangladesh. The decision came into effect from Tuesday, April 8, 2025, and within 24 hours of this, four Bangladeshi cargo trucks were returned from the Indian border. The move comes after the controversial remarks made by Bangladesh interim government chief advisor Mohammad Yunus on India’s northeastern states—called ‘seven sisters’—during his recent visit to China. Is this India’s response, or is there some other reason behind it? Let us understand this development in detail.
Border action: Four trucks sent back
Under the transshipment facility, Bangladesh could send its goods to third countries via India. But now this route is closed. On Wednesday evening, four trucks moving from Benapole port to Petrapole port were stopped at the Indian border. These trucks belonged to Dhaka-based company DSV Air & Sea Limited and were loaded with readymade garments which were headed for European countries.

Kartik Chakraborty, general secretary of Petrapole Port C&F Agents Staff Welfare Association, said, “The Indian Finance Ministry has issued a letter to the customs officials directing them to close the transshipment facility through land ports. Due to this, the goods coming from Benapole did not get entry into Petrapole.” On the other hand, Sajidur Rahman, general secretary of Benapole C&F Agents Staff Association, confirmed that these trucks returned to Bangladesh.

Yunus’s comment and India’s response

The timing of this decision has raised many questions. Recently, Mohammad Yunus had said in China that India’s seven northeastern states are ‘landlocked’ and Bangladesh is the ‘sea gate’ of this region. He also invited China to expand its economy in this region through Bangladesh. Indian Foreign Minister S. Jaishankar strongly objected to this statement. He said, “We believe that cooperation is a holistic approach, which cannot be viewed selectively. India has the longest coastline in the Bay of Bengal and is the hub of regional connectivity.”

India took this step just a few days after Yunus’ statement. Foreign Ministry spokesperson Randhir Jaiswal said, “The transshipment facility given to Bangladesh was causing huge congestion in our airports and ports. This was causing delays and increasing costs of Indian exports. Therefore, this facility has been withdrawn from April 8.” However, he clarified that Bangladesh’s trade with Nepal and Bhutan will not be affected by this.

Bangladesh’s response: Talk of self-reliance

Bangladesh’s trade advisor Sheikh Bashir Uddin tried to downplay the crisis. In a press conference on Thursday, he said, “We will deal with this situation with our management. Yesterday I discussed with traders and buyers. We will increase our commercial capacity and will not lag behind in competition.” He talked about working on alternative routes, but also added, “There is no plan to send a letter to India at the moment. Our focus is on our preparation.” Some people on Bangladesh’s social media are calling it a ‘counter-attack’ by India. On this, Bashir Uddin said, “This is not my concern. My job is to prepare Bangladesh for such situations.” Experts estimate that every year 40,000 to 50,000 tonnes of goods, mostly clothes, used to go to third countries via India. Now new routes will have to be found for this. Impact on trade and diplomacy This decision can bring a new turn in the relations between the two countries. Trade between India and Bangladesh was $ 12.9 billion in 2023-24. India has given zero duty facility to Bangladeshi goods (except liquor and cigarettes) in its market for the last two decades. But in recent months, relations have cooled after attacks on minorities, especially Hindus, in Bangladesh and the Yunus government’s closeness to China. Ajay Srivastava, founder of Global Trade Research Initiative, says, “This move will affect Bangladesh’s exports. Earlier, the time and cost of transport through India was less. Now the delay and cost will increase. Nepal and Bhutan may also raise concerns.” However, Indian exporters have welcomed it. Mithileshwar Thakur, secretary of the Apparel Export Promotion Council, said, “This was our old demand. This will reduce the congestion at Delhi airport and transportation of our goods will be cheaper.” What next? India’s decision is important from both diplomatic and trade perspectives. Is this a response to Yunus’ statement, or a result of complaints from Indian exporters? Perhaps a mix of both. But it is clear that Bangladesh will now have to find new ways. Sanjay Das, a Kolkata-based businessman, says, “This is a big game. Both countries should find a way out through dialogue, otherwise both trade and relations will be affected.” For now, the return of four trucks has given rise to a big message. It remains to be seen how Bangladesh overcomes this challenge and whether the two neighbors return to the path of cooperation again. This event is writing a new story not only of trade but also of regional diplomacy.

This article is based on facts and expert opinion.