On April 8 (Tuesday), India withdrew a key transshipment facility that had allowed Bangladesh to export goods to third countries via Indian territory. The move has prompted concerns among Bangladeshi exporters, especially those in the garment sector, who are now assessing how this change might impact their operations.

Data shows just how important this facility has become. Over the last 15 months, Bangladesh has exported apparel to 36 countries through India under this system. The total value of those shipments was over $462.33 million.

Garment exporters had been relying heavily on the transshipment facility, primarily to avoid the high costs of air freight from Bangladesh. Instead, they were sending their goods to India and then flying them out to various destinations. With India pulling the plug on this option, Bangladeshi exporters now have to find ways to manage the fallout.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has already started analyzing the potential impact. They are reviewing data compiled by the National Board of Revenue (NBR) on apparel exports that were transported through India by road. The numbers paint a clear picture: between January 2024 and March 2025, over $460 million worth of garments were shipped to 36 countries via India, weighing a total of around 34909.21 metric tons. In Bangladeshi currency, that is worth nearly BDT 56.40 billion.

The exported products included a wide range of garments—innerwear, skirts, trousers, men’s and women’s dressing gowns, jackets, pullovers, T-shirts, singlets, breeches, shorts, overcoats, car coats, and children’s clothing.

When asked about the issue, former BGMEA director Mohiuddin Rubel said, “We’ve found that in 2024 alone, and in the first three months of this year, there were 36 shipments made through India. We’ve been told by India that shipments to Nepal and Bhutan will continue without disruption. That means we might face challenges in shipping to the remaining 34 countries.”

He added, “There are both pros and cons to this development. On one hand, it pushes us to become less dependent and more self-reliant. But in today’s competitive market, having the right capabilities is a major factor. It would’ve helped if we had an alternative in place.”