
India Deals a Major Blow to Bangladesh by Halting Transit Facility
Introduction Today, India has delivered a strong message to Bangladesh by suspending its transit facility—a move that comes just days after Bangladesh’s Prime Minister Sheikh Hasina made controversial remarks about India’s Northeast, calling it a “landlocked region” and claiming that Bangladesh is its “guardian.”
This decision is a masterstroke by India, especially at a time when Bangladesh is desperately seeking new export markets after the US imposed a 37% tariff on its textile exports (compared to India’s 26%).
Why This Move is a 10/10 Strategic Play
- Economic Pressure on Bangladesh
- The US tariffs have already hit Bangladesh hard.
- A ₹100 T-shirt from India now costs ₹126 in the US, while a Bangladeshi T-shirt costs ₹137—making Indian exports more competitive.
- Mohammed Yunus, a top Bangladeshi economist, even pleaded with the US to delay the tariffs, fearing economic collapse.
- India Withdraws Transit Privileges
- Since 2010, India allowed Bangladesh to use its land routes for trade with Nepal, Bhutan, and Myanmar—tax-free.
- Now, India has revoked this access, forcing Bangladesh to find costlier alternatives.
- Sheikh Hasina’s Controversial Statements
- Recently, Bangladesh referred to India’s Northeast as a “landlocked region” and hinted that China could act as its “guardian.”
- This angered India, leading to the transit suspension.
Background: India-Bangladesh Relations
1. Past Cooperation
- 2010: India and Bangladesh signed a Trade & Transit Treaty, allowing cross-border trade.
- 2015: BBIN (Bangladesh-Bhutan-India-Nepal) Motor Vehicle Agreement improved regional connectivity.
- 2020: India allowed Bangladesh to use Indian customs routes for free to trade with Nepal, Bhutan, and Myanmar.
2. Why Did India Help Bangladesh Earlier?
- PM Modi once called Bangladesh “India’s biggest development partner.”
- India hoped better ties would boost regional trade and counterbalance China’s influence.
- Bangladesh, in return, allowed India to use its waterways for Northeast connectivity.
3. What Changed?
- Bangladesh’s pro-China tilt and anti-India rhetoric (like calling the Northeast “landlocked”).
- Yunus-Modi talks failed—Bangladesh refused to align with India’s strategic interests.
- India realized Bangladesh was not reciprocating goodwill, leading to the transit cut.
What Happens Next?
- Bangladesh’s economy will suffer—it loses a cheap trade route at a time when US tariffs are already hurting.
- China may step in, but India’s move shows it won’t tolerate disrespect.
- If Bangladesh apologizes or softens its stance, India may reconsider.