India Ends Bangladesh’s Trade Transit Through Indian Customs Routes

The decision, effective April 9, 2025, disrupts regional trade logistics and raises questions about WTO compliance and geopolitical implications.

India has officially terminated the transshipment facility that allowed Bangladesh to export goods via Indian customs stations to third countries, citing logistical and economic concerns.
The facility, initiated in 2020, streamlined Bangladesh's trade with Bhutan, Nepal, and Myanmar but reportedly caused congestion and delays for Indian exporters.
Indian officials emphasized that the move benefits domestic exporters by freeing up air cargo capacity and reducing freight costs.
Trade experts warn of significant disruptions to Bangladesh’s logistics, with higher costs and delays likely, and potential diplomatic friction with Nepal and Bhutan over restricted transit access.
The decision is tied to security concerns over Bangladesh’s growing engagement with China near India’s sensitive Siliguri Corridor, raising geopolitical tensions.