PTC Web Desk: The Indian government has cancelled a special trade facility that allowed Bangladesh to send its export goods to other countries using Indian land routes, ports, and airports. This facility was helping Bangladesh send items to countries like Nepal, Bhutan, and Myanmar more easily. It had been active since June 2020.

The decision was announced in a circular by the Central Board of Indirect Taxes and Customs (CBIC) on April 8. The circular said the old rule from June 29, 2020, was now cancelled immediately. However, any Bangladeshi cargo already inside India could still exit the country using the old process.

Experts say this move could help Indian industries like textiles, footwear, and jewellery, as Bangladesh was a strong competitor, especially in clothing exports.

Why was the facility cancelled?

This step came soon after Muhammad Yunus, Chief Adviser of Bangladesh’s interim government, made controversial comments during a four-day visit to China. He said India’s Northeast was a 'landlocked' region with no access to the sea, and that Bangladesh was the only gateway to the ocean for that area. Yunus also invited China to increase its economic presence in Bangladesh and called the Indian Northeast a possible "extension of the Chinese economy."

At a roundtable in Beijing, Yunus said, “The Seven Sisters – the Northeastern states of India – are landlocked. They have no way to reach the ocean. So this opens a huge possibility. This could be an extension of the Chinese economy.”

India’s strong response

India’s External Affairs Minister S Jaishankar responded strongly. He said India saw cooperation as something that should be equal and not selective. He also reminded that India had the longest coastline in the Bay of Bengal — around 6,500 km — and was already well connected through roads, railways, waterways, and energy pipelines, especially in the Northeast region.

He added that India's Northeast was becoming a connectivity hub for the BIMSTEC region (a group of South Asian and Southeast Asian countries), and did not need to depend on anyone else for access to the sea.