Dhaka's actions prompted India to halt transhipment facility: MEA

India on Thursday said its decision to withdraw the transhipment facility for Bangladeshi exports to third countries was in response to certain measures initiated by Dhaka that impacted bilateral trade.

Though New Delhi did not elaborate on the steps by Dhaka, it is learnt the decision by Bangladesh's interim government to halt import of Indian yarn and closure of three land ports triggered the Indian response on the transhipment facility.

"We stand for a democratic, for an inclusive, and for a prosperous Bangladesh. As far as trade issues are concerned, last week we had made an announcement regarding trans-shipment facility," External Affairs Ministry spokesperson Randhir Jaiswal said.

"We had taken that measure because of the congestion that we see on our Ports and our Airports. But I would also remind you, please do have a look at the developments that have happened on the Bangladeshi side prior to us announcing these measures," he said.

The spokesperson was responding to question on India-Bangladesh trade ties at his weekly media briefing.

Last week, India announced withdrawing the transhipment facility it extended to Bangladesh for exports to the Middle East, Europe and various other countries through its ports and airports.

The Indian side cited congestion at airports and ports as the reason for the move.

India has exempted Bangladeshi exports to Nepal and Bhutan as such trade facilitation is mandatory for landlocked countries under the framework of provisions of the World Trade Organisation (WTO).

India and Bangladesh entered into the transshipment arrangement in 2020 to boost trade ties.

Jaiswal said Prime Minister Narendra Modi had told Muhammad Yunus at their first meeting in Thailand on the margins of a BIMSTEC Summit that India looks forward to a "positive and constructive" relationship with Bangladesh.

It is learnt that Bangladesh halted yarn imports from India via land ports in March.

In March, a committee set up by Bangladesh's interim government recommended the closure of Chilahati, Daulatganj and Tegamukh land ports on the border with India, and the suspension of operations at Balla land port.

To a separate question, Jaiswal said India has taken note of the Pakistani foreign secretary's visit to Bangladesh.

"Yes, we have taken note of it," he said.

There has been a sharp downturn in India-Bangladesh relations after deposed prime minister Sheikh Hasina fled Dhaka in August last year in the face of a massive anti-government protest.

The relations nosedived dramatically after the interim government headed by Yunus failed to contain attacks on minorities, especially Hindus, in that country.