{"id":41050,"date":"2025-04-12T19:25:53","date_gmt":"2025-04-12T13:55:53","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=41050"},"modified":"2025-04-12T19:26:07","modified_gmt":"2025-04-12T13:56:07","slug":"india-ends-transshipment-for-bangladesh-exports","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/12-04-2025\/india-ends-transshipment-for-bangladesh-exports","title":{"rendered":"India Ends Transshipment for Bangladesh Exports"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/IR<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>India has formally revoked the transshipment facility<\/strong> that allowed Bangladesh to export goods to third countries via Indian land customs stations, ports, and airports.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Transshipment Agreement<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Introduced in <strong>2020 <\/strong>by India\u2019s Central Board of Indirect Taxes and Customs (CBIC), the agreement aimed to <strong>enhance regional connectivity and trade cooperation.<\/strong><\/li>\n\n\n\n<li>Under this arrangement, cargo from Bangladesh could pass through<strong> Indian Land Customs Stations (LCSs) en route to ports and airports.\u00a0<\/strong><\/li>\n\n\n\n<li>This facilitated smoother trade flows for Bangladeshi<strong> exports to regions like Europe, West Asia, and beyond.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why was it revoked?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India cited<strong> logistical challenges<\/strong> as the primary reason for rescinding the facility.<\/li>\n\n\n\n<li>The transshipment arrangement led to <strong>\u2018significant congestion\u2019<\/strong> at Indian airports and ports.\u00a0<\/li>\n\n\n\n<li>This congestion resulted in<strong> delays, increased costs, and backlogs<\/strong> that hindered India\u2019s own export processes.<\/li>\n\n\n\n<li>The move is expected to significantly impact Bangladesh\u2019s trade logistics and costs, particularly for exports destined for Western markets.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Highlights of India Bangladesh Relations<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Independence and Liberation War: <\/strong>India played a crucial role in Bangladesh&#8217;s independence in 1971, supporting the Bengali nationalist movement against Pakistan\u2019s rule.\n<ul class=\"wp-block-list\">\n<li>This historic event laid the foundation for strong bilateral ties.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Land Boundary Agreement (LBA): <\/strong>In 2015, both countries resolved long-standing border issues by exchanging enclaves and simplifying their international border, which had remained unresolved since partition in 1947.<\/li>\n\n\n\n<li><strong>Connectivity:<\/strong><strong> <\/strong>Five pre-1965 rail links have been rehabilitated between India and Bangladesh.\u00a0 There are currently three railway trains operating between the two countries \u2013 Maitri Express ; Bandhan Express ; and Mitali Express.\n<ul class=\"wp-block-list\">\n<li>The inauguration of Akhaura-Agartala cross-border rail link is a crucial step towards enhancing connectivity of northeastern India with Bangladesh.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Economic Relations:<\/strong> Bangladesh is India\u2019s biggest trade partner in South Asia and India is the second biggest trade partner of Bangladesh in Asia.\n<ul class=\"wp-block-list\">\n<li>The total trade turnover in FY24 touched US$ 12.90 billion.<\/li>\n\n\n\n<li>India\u2019s export to Bangladesh stood at US$ 11.06 billion in FY24.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Trade Agreements:<\/strong> The two countries are members of various regional trade agreements such as the <strong>Asia Pacific Trade Agreement (APTA<\/strong>), <strong>the SAARC Preferential Trade Agreement (SAPTA) <\/strong>and <strong>the Agreement on South Asian Free Trade Area (SAFTA) <\/strong>which govern the tariff regimes for trade.\u00a0<\/li>\n\n\n\n<li><strong>Regional Cooperation: <\/strong>Both countries are active members of regional organizations like SAARC (South Asian Association for Regional Cooperation) and BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation), promoting regional integration and cooperation.<\/li>\n\n\n\n<li><strong>Various Joint exercises <\/strong>take place between the two countries:\n<ul class=\"wp-block-list\">\n<li><strong>Exercise Sampriti<\/strong> (Army) and\u00a0<\/li>\n\n\n\n<li><strong>Exercise Milan<\/strong> (Navy).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>In the energy sector,<\/strong> Bangladesh imports nearly 2,000 megawatts of electricity from India.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Border Issues: <\/strong>Although the Land Boundary Agreement in 2015 resolved many longstanding border disputes, there are still occasional issues related to border security and illegal crossings that strain relations.<\/li>\n\n\n\n<li><strong>Water Sharing:<\/strong> Disputes over the sharing of common rivers, such as the Teesta River, remain unresolved.\u00a0<\/li>\n\n\n\n<li><strong>Trade Imbalance:<\/strong> While trade between India and Bangladesh has grown significantly, there remains a trade imbalance where India exports more to Bangladesh than it imports.\n<ul class=\"wp-block-list\">\n<li>This led to economic tensions and protectionist measures.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Cross-Border Migration and Demographic Shifts: <\/strong>Historical and undocumented migration from Bangladesh to Indian states like Assam and West Bengal remains a politically sensitive issue.<\/li>\n\n\n\n<li><strong>Security Concerns:<\/strong> Issues related to border security, cross-border smuggling, and occasional incidents involving extremist groups pose security challenges for both countries, requiring continued cooperation and vigilance.<\/li>\n\n\n\n<li><strong>China\u2019s Growing Influence in Bangladesh:<\/strong> Bangladesh\u2019s deepening ties with China, particularly in infrastructure and defense, is a strategic concern for India. India perceives this as a potential dilution of its strategic space.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India considers <strong>Bangladesh an important ally in South Asia<\/strong>, with whom it shares the longest land boundary among all its neighbours.<\/li>\n\n\n\n<li>Over the years, India and Bangladesh have forged a multifaceted relationship, marked by a shared history, culture, and geographical proximity.\u00a0<\/li>\n\n\n\n<li>By fostering dialogue, promoting inclusivity, and diversifying partnerships, they can pave the way for a stronger and more resilient bilateral relationship.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.business-standard.com\/external-affairs-defence-security\/news\/india-bangladesh-transshipment-facility-export-muhammad-yunus-modi-125041000658_1.html\" rel=\"nofollow noopener\" target=\"_blank\"><strong>BS<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">India has formally revoked the transshipment facility that allowed Bangladesh to export goods to third countries via Indian land customs stations, ports, and airports.<\/li>\n<p><\/p>\n<h3><strong>Transshipment Agreement<\/strong><\/h3>\n<li class=\"ms-5\">Introduced in 2020 by India\u2019s Central Board of Indirect Taxes and Customs (CBIC), the agreement aimed to enhance regional connectivity and trade cooperation.<\/li>\n<li class=\"ms-5\">Under this arrangement, cargo from Bangladesh could pass through Indian Land Customs Stations (LCSs) en route to ports and airports.\u00a0<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/12-04-2025\/india-ends-transshipment-for-bangladesh-exports\" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-41050","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/41050","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=41050"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/41050\/revisions"}],"predecessor-version":[{"id":41079,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/41050\/revisions\/41079"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=41050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=41050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=41050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}