India Revokes Trans-Shipment Facility for Bangladesh After Yunus’ ‘Landlocked’ Remark on Northeast
In a significant diplomatic and trade move, India has withdrawn a key trans-shipment facility that allowed Bangladeshi export cargo to transit through Indian ports, land customs stations, and airports to reach third countries. The decision follows controversial remarks by Bangladesh’s interim Chief Adviser, Muhammad Yunus, who described India’s Northeast region as “landlocked” and suggested deeper Chinese economic engagement in the area.
The facility, which was introduced in June 2020, had enabled Bangladesh to route its exports more efficiently to neighboring countries such as Nepal, Bhutan, and Myanmar. The withdrawal of this logistical support was confirmed in a notification issued by the Central Board of Indirect Taxes and Customs (CBIC) on April 8.
“It has been decided to rescind… circular…dated June 29, 2020, as amended with immediate effect. Cargo already entered into India may be allowed to exit the Indian territory as per the procedure given in that circular,” the notification stated.
Trade analysts said the rollback could affect Bangladesh’s competitive edge in several export sectors such as textiles, footwear, and gems and jewellery — industries where it directly competes with Indian manufacturers.
The development comes just days after Yunus, during a four-day visit to China, described India’s Northeast as “landlocked” and highlighted Bangladesh as the only viable maritime access point for the region. He also suggested that the region could serve as an “extension of the Chinese economy.”
“The seven states of India, the eastern part of India, are called the Seven Sisters. They are a landlocked region of India. They have no way to reach out to the ocean. So this opens up a huge possibility. This could be an extension of the Chinese economy,” Yunus stated at a roundtable in Beijing.
India’s External Affairs Minister, S. Jaishankar, responded strongly to the remarks, emphasizing India’s strategic positioning and the extensive infrastructure linking its Northeast to the rest of Asia.
“India has the longest coastline in the Bay of Bengal, of almost 6,500 km. Our North-Eastern region is emerging as a connectivity hub for BIMSTEC, with a myriad network of roads, railways, waterways, grids and pipelines,” Jaishankar said.
He further added, “We believe that cooperation should be rooted in an integrated outlook and not be subject to selective interpretations. India’s connectivity initiatives are inclusive and far-reaching.”
The incident marks a new point of tension in Indo-Bangladesh relations, particularly at a time when India has been strengthening its Act East policy and developing the Northeast as a strategic transit and trade hub. Experts suggest that the move could lead to further realignments in regional trade and diplomatic equations.
While no official comment has yet come from Dhaka regarding the facility’s cancellation, the development is likely to prompt reassessments in both capitals over the future of bilateral trade arrangements.
