India did not take the statement well and in response highlighted that the transshipment procedure was resulting in congestion at Indian airports and ports and thus the discontinuation announcement.
India has officially withdrawn the transshipment facility that they used to provide Bangladesh for exporting various items to the Middle East, Europe and various other countries except Nepal and Bhutan as a response to controversial statement made by head of Dhaka's interim government Muhammad Yunus.
Yunus during his recent visit to China, said India's northeastern states, which share a nearly 1,600-km border with Bangladesh, are 'landlocked' and have no way to reach the ocean except through his country.
India did not take the statement well and in response highlighted that the transshipment procedure was resulting in congestion at Indian airports and ports and thus the discontinuation announcement.
This comes days after Yunus and Prime Minister Narendra Modi held talks in Bangkok on the sidelines of the BIMSTEC summit on April 4.
External Affairs Ministry spokesperson Randhir Jaiswal said the transshipment facility has been withdrawn with effect from April 8.
"The transshipment facility extended to Bangladesh had over a period of time resulted in significant congestion at our airports and ports," Jaiswal said.
"Logistical delays and higher costs were hindering our own exports and creating backlogs," he said.
Bangladesh has been using several Indian ports and airports for sending its exports to Middle East, Europe and many other countries.
"To clarify, these measures do not impact Bangladesh exports to Nepal or Bhutan transiting through Indian territory," Jaiswal said at his weekly media briefing.
Yunus during his visit to China met President Jinping and was heard saying, “The seven states of India, the eastern part of India, are called the seven sisters. They are a landlocked region of India. They have no way to reach out to the ocean.”
"So this opens up a huge possibility. This could be an extension of the Chinese economy," Yunus further said at a high-level roundtable discussion in Beijing on Friday.
Besides the Indian states, Yunus also referred to Nepal and Bhutan in his strategic discussion with China.
"That's an opportunity we should seize and implement. Nepal and Bhutan have unlimited hydropower, which is a blessing. We can bring it to our purpose. From Bangladesh, you can go anywhere you want. The ocean is our backyard," Yunus said in Beijing, as per a report by India Today.
"We are the only guardian of the ocean for all this region. So this opens up a huge possibility. This could be an extension of the Chinese economy. Build things, produce things, market things, bring things to China, bring it out to the rest of the world," Yunus added.
The Indian side was upset over Dhaka's version of the meeting between Yunus and PM Modi, especially attacks on minorities and the extradition request for Hasina.
PTI quoted few people who were familiar with the matter and have described the version as "mischievous and politically motivated", especially the aspects relating to attacks on minorities and Dhaka's request for extraditing former premier Sheikh Hasina.
Yunus' press secretary Shafiqul Alam, in a Facebook post, on Saturday said the chief adviser raised with Modi Bangladesh's request for the extradition of Hasina and the "response was not negative".
The characterisation of the Indian prime minister's remarks regarding the relationship with Yunus and the previous Bangladesh government were "inaccurate", the people said.
In the meeting in Bangkok on Friday, Modi conveyed to Yunus India's deep concerns about the safety of Bangladesh's Hindus and other minorities.
"The prime minister urged that rhetoric that vitiates the environment is best avoided," an Indian readout of the meeting said.
PM Modi underlined India's concerns related to the safety and security of minorities in Bangladesh, including Hindus, and expressed his expectation that the government of Bangladesh would ensure their security.
New Delhi has not so far responded to the request made by Bangladesh's interim government last year for the extradition of Hasina.
India-Bangladesh relations nosedived dramatically after Yunus failed to contain attacks on minorities, especially Hindus, in that country.
Hasina has been living in New Delhi since she fled Dhaka in August last year.