INDIA鈥橲 rescinding the transshipment facility for Bangladesh, which beginning in 2020 had so far allowed export cargoes from Bangladesh to third countries through India鈥檚 land customs stations, with an immediate effect from April 8 may not have too much of impact. But viewed in the context of international trade, India鈥檚 move would narrow opportunities, options and flexibility for Bangladesh by a degree and could, thus, hinder the potential for international trade. Bangladesh has always prioritised direct shipping and there has largely been no significant transshipment through India. But, this certainly constitutes an unneighbourly attitude of India towards Bangladesh, especially when Bangladesh has allowed India transshipment facilities. India鈥檚 external affairs ministry, however, says that the measures that New Delhi has taken would not affect Bangladesh鈥檚 export to Nepal or Bhutan transiting through India. India on June 29, 2020 allowed the transport of Bangladeshi export cargoes in containers or closed-body trucks via ports and airports in India, at the time of Covid pandemic when Bangladeshi exporters faced problems in shipping goods from Dhaka airport because of scanner issues. India, however, says that despite the withdrawal of the facility, the cargoes already in transit would be allowed to exit India in keeping with the 2020 procedures.
New Delhi has given significant congestion at Indian airports and ports, causing delays and increased costs in Indian export, that has created backlogs as reasons for the withdrawal of the transshipment facility for Bangladesh. The reasons may be true, but it is also anybody鈥檚 guess that its strained relation with Bangladesh after the August 2024 political changeover, which overthrew the Awami League鈥檚 authoritarian government that had governed the country for more than a decade and a half that prompted the deposed prime minister Sheikh Hasina to flee to India, may have been an implicit reason. Bangladesh allowed India transshipment through the Bangladesh territory in 2014, with the ferrying of 1,000 tonnes of iron and steel sheets. A 2011 Indian transshipment was let through Bangladesh in 鈥榓 goodwill gesture鈥� and a 2015 one 鈥榦n humanitarian grounds,鈥� without any fee having been levied. Whilst India has not much used the facilities, although they forced Bangladesh to spend a lot on the infrastructure, rendering Bangladesh鈥檚 efforts useless, Bangladesh does not also bank on India鈥檚 transshipment given to Bangladesh. The impact of India鈥檚 decision would not, therefore, be constraining for Bangladesh. The Indian move could, rather, well be construed as an extended attempt at discommoding the Bangladesh government, which is in a transitional phase, especially in view of a series of events that have happened in the changed political context of Bangladesh.
With all the unlikely impact of India鈥檚 transshipment decision on Bangladesh, it still remains unneighbourly.
