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India-Bangladesh Trade Relations Strain Over Port Closures and Transit Policy Shifts

India cites congestion and Bangladesh's unilateral actions as reasons for halting transshipment, while Dhaka denies involvement in West Bengal unrest and pivots to Pakistani imports.

India has responded to concerns surrounding transshipment policies with Bangladesh.
A crane loads shipping containers on a truck at the Deendayal Port Authority (DPA) in Kandla in Gujarat on April 5 (AFP FILE PHOTO)
Chief Adviser of Bangladesh Muhammad Yunus and Prime Minister Narendra Modi (Photo: IANS)
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Overview

  • India officially closed its transshipment facility for Bangladeshi cargo, citing port congestion and Bangladesh's prior unilateral port closures as contributing factors.
  • Bangladesh had earlier shut down three land ports and suspended another, citing inadequate infrastructure, a move India deemed regressive and unilateral.
  • Dhaka introduced an IRM unit at Benapole port in January 2025, adding inspection protocols that India argues have delayed cargo processing.
  • Bangladesh has shifted its yarn imports from India to Pakistan, signaling economic realignment amidst ongoing trade tensions.
  • Bangladesh's press secretary refuted reports linking its citizens to communal riots in West Bengal, emphasizing the need for minority protection in the region.