India revokes key trade corridor for Bangladesh
Diplomatic Correspondent :
The Indian government has abruptly withdrawn the transshipment facility that previously allowed Bangladesh to transport goods to third countries such as Nepal and Bhutan via Indian land routes.
The decision, announced by the Central Board of Indirect Taxes and Customs (CBIC) on Tuesday, has severed a critical connectivity corridor through the strategically important Siliguri region – commonly known as the “Chicken’s Neck.”
This move reverses a 2020 directive that permitted the movement of Bangladeshi goods through Indian ports, airports, and land routes for delivery to landlocked neighbouring countries.
The cancellation mandates the immediate exit of all vehicles currently transporting goods through Indian territory, creating significant logistical disruption and financial losses for Bangladeshi exporters.
However, the Indian Ministry of External Affairs (MEA) on Wednesday stated that the Indian government’s step that has cancelled transshipment facility for Bangladesh would not affect the exports to Nepal and Bhutan.
The timing of the CBIC’s announcement came as a surprise to many diplomatic observers, particularly in light of a recent bilateral meeting between Bangladesh’s Interim Chief Adviser, Professor Muhammad Yunus, and Indian Prime Minister Narendra Modi at the BIMSTEC Summit in Bangkok on 4 April. The meeting had raised hopes for a thaw in Dhaka-New Delhi relations.
Tensions escalated further following Yunus’s recent visit to China, during which he invited Chinese investment in Bangladesh and promoted the Bay of Bengal as a potential regional gateway for landlocked nations, including India’s northeastern states, Nepal, and Bhutan. Indian political figures and media outlets have interpreted these comments as an intrusion into India’s internal affairs.
Although Yunus had made similar remarks about regional connectivity involving India’s “Seven Sister” states on previous occasions without eliciting a reaction from New Delhi, his statements made on Chinese soil have drawn sharp criticism. Analysts suggest this may have contributed to India’s sudden policy reversal.