The Indian government has recently revoked a transhipment facility that allowed Bangladesh to export goods to third countries through Indian ports and airports. The Central Board of Indirect Taxes and Customs (CBIC) issued a notification to this effect on 8 April The transhipment facility was part of an agreement reached in 2020 between the governments of India and Bangladesh.
The official justification by the Ministry of External Affairs (MEA), for terminating the transhipment facility, is that it was creating “significant congestion” and “logistical delays” in Indian airports and ports. However, the facility has been in place and used by Bangladesh for the past 5 years, without any such problems having been raised so far.
Impact on Bangladesh’s trade
The termination of the transhipment facility is causing major disruption in Bangladesh’s trade with third countries, including the export of readymade garments to Nepal, Bhutan and Myanmar. These form a major part of Bangladesh’s exports. The withdrawal of this facility means that Bangladeshi trading companies are having to find alternative, longer routes for their exports, significantly raising the costs of transportation.
The Indian government’s decision to withdraw this facility is a hostile act against the government and people of Bangladesh.
It may be noted that Bangladesh’s trade has already been severely affected by the Indian government creating hurdles in granting Indian visas to Bangladeshi business men. The Indian government has also tightened restrictions on trade with Bangladesh in other areas, including the closing of border checkpoints and restricting Indian imports of garments from that country.
Deterioration of India’s relations with Bangladesh
This latest development comes at a time when India’s relations with Bangladesh have been steadily deteriorating.
In August 2024, Bangladesh’s former Prime Minister Sheikh Hasina fled from her country and took refuge in India, in the face of a mass uprising against her government. She continues to remain in the protection of the Indian state, with the Indian government having refused repeated requests by the interim government of Bangladesh for Sheikh Hasina’s extradition. It may be noted that Sheikh Hasina faces charges in Bangladesh’s International Crimes Tribunal, for carrying out violent attacks on people protesting against her government last year.
Growing resentment against Indian government
There is great resentment in Bangladesh against the blatant interference of the Indian intelligence agencies in its internal affairs, including by repeatedly ensuring the electoral victory of the Awami League headed by Sheikh Hasina during the past 15 years. The government of Bangladesh has protested with the government of India against the high-pitched propaganda in Indian news channels about the alleged increase in persecution of religious minorities in Bangladesh in recent times.
People in Bangladesh hold the Indian state responsible for causing drought and floods in their country, by controlling the flow of water from the Teesta River. They are angry with Indian political leaders for blaming immigrants from Bangladesh for the problems in West Bengal, Assam and other Northeastern states.
The recent drive of the Indian government to forcibly push back across the land border, thousands of Bengali Muslims who are alleged to be “illegal immigrants”, without following formal deportation procedures, is also causing great resentment in Bangladesh against the Indian government.
Unprincipled policy towards neighbouring countries
The Indian bourgeoisie is using its position as a big power in the region to dominate the neighbouring countries. It has at various times taken measures that will negatively impact the economies of our neighbours in South Asia and the livelihood of their people. It has used the dependence of the neighbouring countries on India to interfere in the internal affairs of these countries, including in the formation of governments there. This has been true in its relations with Nepal, Bhutan, Bangladesh, Sri Lanka and Maldives. Resentment against Indian interference has been increasing in these and other neighbouring countries.
The governments of all other countries in South Asia are strengthening their ties with China, to counterbalance the danger of excessive dependence on India. This is not to the liking of the Indian bourgeoisie which views China as a serious contender in its imperialist pursuits in the region.
The halting of transhipment facilities to Bangladesh by the Indian state has to be seen in this light. It is a hostile act that will impact the economy of our neighbouring country and the livelihood of its peoples. It is an act in the service of the imperialist aims of the Indian bourgeoisie. It will not win any friends for India among the peoples of Bangladesh or other countries of South Asia.
The working class and people of our country would benefit if India were to follow a policy of forging lasting friendly relations with other countries based on opposition to all forms of imperialist domination and interference. What stands in the way of such a principled foreign policy is the narrow selfish interest of the Indian ruling bourgeois class, in its drive to join the league of the most dominant imperialist powers of the world.