The Indian government has revoked the transshipment facility that allowed Bangladesh to export cargo to third countries through Indian land customs stations.
Indian exporters, mainly from the apparel sector, had urged the government to withdraw this facility.
The facility allowed smooth trade flows for Bangladesh's exports to countries like Bhutan, Nepal, and Myanmar and was provided by India in June 2020.
The decision is expected to help Indian exporting sectors like apparel, footwear, and gems and jewellery, and creates concerns about constrained transit access for landlocked nations like Nepal and Bhutan trading with Bangladesh.