India Revokes Bangladesh's Export Transit Facility, Disrupts Trade

India has officially revoked a transshipment facility that allowed Bangladesh to export goods to third countries via Indian land routes, a decision influenced by controversial remarks made by Bangladesh's interim leader, Muhammad Yunus, regarding India's northeastern states. The withdrawal, effective April 8, 2023, stems from concerns about congestion at Indian ports and airports, which had been exacerbated by the facility. While the move is expected to hinder Bangladesh's export capabilities—particularly impacting its garment sector—the Indian government stated it will improve logistical efficiency for its own exporters. Critics note that this change could disrupt trade with landlocked neighbors like Nepal and Bhutan, which rely on Indian infrastructure for access to global markets. The relationship between India and Bangladesh has been strained recently, particularly following political tensions and Yunus's comments. Experts emphasize that the decision may adversely affect regional trade dynamics, contradicting the potential for enhanced bilateral relations.