India ends transshipment route for Bangladesh after Yunus' comment on North East

India has withdrawn the transshipment facility it had extended to Bangladesh for exports to the Middle East, Europe, and other global markets—just days after interim Bangladeshi leader Muhammad Yunus claimed that India's northeastern states are "landlocked" and can only access the sea through Bangladesh.

The move, seen as a direct response to Yunus' controversial remarks in China, marks a sharp deterioration in bilateral ties already strained over minority attacks in Bangladesh and an unresolved extradition request for former Prime Minister Sheikh Hasina, who has been living in New Delhi since fleeing Dhaka in August last year.

"The trans-shipment facility extended to Bangladesh had over a period of time resulted in significant congestion at our airports and ports," External Affairs Ministry spokesperson Randhir Jaiswal said on Thursday. "Logistical delays and higher costs were hindering our own exports and creating backlogs." He confirmed the withdrawal is effective from April 8.

Assam Chief Minister Himanta Biswa Sharma said that India's decision to revoke the transshipment facility for Bangladesh underscored Prime Minister Modi's
"unwavering commitment to safeguarding national interests and the security of the Northeast region". "This decisive action reflects the government’s firm stance on protecting India’s strategic and economic priorities."

The facility, initiated in 2020 and formally extended in 2022, allowed Bangladesh to use Indian ports and airports — including Delhi — for shipping goods globally. However, Indian authorities clarified that "these measures do not impact Bangladesh exports to Nepal or Bhutan transiting through Indian territory," as such access is protected under WTO norms for landlocked countries.

The trigger for the withdrawal appears to be Yunus' comments during a business event in China, where he stated, "The seven northeastern states of India are a landlocked region and they have no way to reach the ocean except through Bangladesh." The remarks did not go down well in New Delhi.

Tensions escalated further after a meeting between Yunus and Prime Minister Narendra Modi on April 4 in Bangkok, held on the sidelines of the BIMSTEC summit. The Indian side reportedly took issue with Dhaka's public description of the meeting, especially a Facebook post by Yunus’ press secretary Shafiqul Alam, who claimed the adviser raised the extradition request for Hasina and said "the response was not negative".

According to PTI, officials in New Delhi described Bangladesh's version of the exchange as "mischievous and politically motivated," particularly in reference to attacks on minorities and the extradition issue. In the official readout of the meeting, Prime Minister Modi "urged that rhetoric that vitiates the environment is best avoided" and conveyed "deep concerns" over the safety of Hindus and other minorities in Bangladesh.

India has not formally responded to the extradition request filed by Bangladesh's interim government last year for Sheikh Hasina.

(With inputs from PTI)