Overview

• India has officially terminated the trans-shipment facility established in 2020, which allowed Bangladeshi exports to transit through Indian land customs stations to third countries.
• The decision, effective April 8, 2025, was driven by concerns from Indian exporters about reduced air cargo capacity and congestion at key hubs like Delhi's cargo terminal.
• Bangladesh, a major competitor in the textile sector, faces potential logistical delays, increased costs, and disrupted trade routes as a result of the policy reversal.
• Neighboring landlocked countries such as Nepal and Bhutan may encounter restricted transit access to Bangladesh, raising compliance questions under WTO-mandated transit rights.
• Indian trade sectors, including apparel and footwear, are expected to benefit from improved logistics and increased air cargo availability following the policy change.