Days after Prime Minister Narendra Modi and Bangladesh government’s interim advisor Muhammad Yunus met on the sidelines of the BIMSTEC meeting in Thailand, the stalemate in the two countries’ relations is now becoming evident. While Yunus is keen on wooing China against India, the Narendra Modi government has taken the first major action against Bangladesh.
India has now discontinued the transshipment facility for Bangladesh’s export cargo, a move that will disrupt Dhaka’s trade with Bhutan, Nepal, and Myanmar. According to a notification issued by the Central Board of Indirect Taxes and Customs (CBIC), the government rescinded its earlier circular dated June 29, 2020 permitting the ‘transhipment of export cargo from Bangladesh to third countries through Land Customs Stations (LCSs) to ports or airports in containers or closed-bodied trucks’, reported the Indian Express.
The move also comes after Yunus urged China to set up its economic extension into the strategically important region of Bangladesh near Northeast India, thus posing a security challenge to New Delhi. The earlier order facilitated transhipment of export cargo from Bangladesh to other countries like Bhutan, Nepal, and Myanmar using Indian Land Customs Stations en route to Indian ports and airports. This facility was aimed at enabling smooth trade flows for Bangladesh.
The termination of the 2020 circular will now choke key trade points for Bangladesh to Bhutan, Nepal, and Myanmar as the smooth movement facility has now ended. Reacting to the revocation of the permit, MEA Spokesperson Randhir Jaiswal said, “…The Transshipment facility extended to Bangladesh had over a period of time resulted in significant congestion at our airports and ports. Logistical delays and higher costs were hindering our own exports and creating backlogs. The facility, therefore, has been withdrawn w.e.f. April 8, 2025.” Jaiswal, however, said that these measures do not impact Bangladesh exports to Nepal or Bhutan.
Recently, during his visit to Beijing, Yunus said that the seven northeastern states of India are landlocked without access to the sea and Bangladesh is the ‘only guardian’ of the sea in the region. He urged China to explore the potential economic opportunity in the region, making it an extension of China. Yunus’ remark did not go well with India and northeastern leaders openly criticised his statement.
Taking to X, Assam CM Himanta Biswa Sarma said, “The statement made by Md Younis of Bangladesh so-called interim Government referring to the seven sister states of Northeast India as landlocked and positioning Bangladesh as their guardian of ocean access, is offensive and strongly condemnable. This remark underscores the persistent vulnerability narrative associated with India’s strategic “Chicken’s Neck” corridor.”
Sarma further added, “Historically, even internal elements within India have dangerously suggested severing this critical passageway to isolate the Northeast from the mainland physically. Therefore, it is imperative to develop more robust railway and road networks both underneath and around the Chicken’s Neck corridor. Additionally, exploring alternative road routes connecting the Northeast to mainland India, effectively bypassing the Chicken’s Neck, should be prioritized. Though this may pose significant engineering challenges, it is achievable with determination and innovation.”
Lashing out at Yunus, Sarma said that such provocative statements ‘must not be taken lightly, as they reflect deeper strategic considerations and longstanding agendas’.
