SADIK AHMED PRANTO

In today's global politics, there are no  permanent allies. Situations can quickly turn into crises, but these crises can also create new opportunities. A story comes to mind where trees were being cut down one by one. The remaining trees thought, "The axe is our friend. Look, the handle is made from our wood." But when the last tree was felled, they realized the axe was never their ally. The relationship between India and Bangladesh is now in a similar situation.

Currently, a new challenge has emerged in India-Bangladesh trade relations. India’s decision to stop providing transshipment facilities has created a problem for Bangladesh, but it may also bring new possibilities if Bangladesh can play its cards right. 

The most important step for Bangladesh is to develop its port infrastructure. Amid the development of the Mongla and Chittagong ports, Bangladesh can directly enter export markets. In recent years, the operations at Chittagong port have significantly increased. In 2024, the handling of 20-foot containers increased by nearly 200,000, and cargo handling increased by about 30 million tons (Source: Samakal, 2025). This shows that if Bangladesh can enhance its port capabilities, it could bring positive changes to the export sector.

Additionally, implementing international trade agreements (FTAs) can foster trade within a specific region. If agreements with countries like India, Nepal, and Bhutan are put into place, trade could enhance without the need for transshipment. Entering new international markets would make Bangladesh more competitive.

However, Following ending India's transshipment facilities,  Bangladesh has to  face various challenges, especially in the garment industry,  logistics.  In 2022, Bangladesh's garment exports amounted to $45 billion, accounting for about 84% of the country's total exports (Source: World Trade Organization). But for transshipment facilities, delays in shipping could hurt Bangladesh's competitive position in the international market.

Moreover, Bangladesh will need to invest heavily to find alternative trade routes, which could be a significant financial burden. This crisis could also financially hurt India, as the loss of transshipment revenue could decrease the earnings of Indian ports. If Bangladesh uses alternative routes, India will not get  transport costs , which would be detrimental to India's finances as well.

It is now time for Bangladesh to adopt strong strategies. First, Bangladesh needs to focus on developing its port infrastructure. By improving the capacity of Mongla and Chittagong ports, it can enter direct export markets. At the same time, international trade agreements (FTAs) should be implemented swiftly, allowing Bangladesh to expand trade without relying on transshipment facilities.

Additionally, improving logistics and using modern technology can make the transportation of goods faster and more cost-effective. To attract foreign investment, the Bangladesh government must adopt business-friendly policies to help Bangladesh's products enter international markets more easily. Establishing new embassies and expanding diplomatic relations could also play a key role in boosting Bangladesh's international business operations. Currently, some countries do not have embassies in Bangladesh, so their citizens have to rely on Indian embassies. Establishing these embassies in Bangladesh could create a more favorable environment for regional trade growth.

Improving the healthcare system should be a top priority for Bangladesh, especially to attract foreign investment. Foreign investors look for strong and advanced healthcare systems because it reflects the efficiency of a country's workforce and overall development. By improving the healthcare sector, Bangladesh can strengthen its international reputation and accelerate economic growth.

Billions of dollars worth of goods  are coming to Bangladesh  from India's Seven Sisters through the Mongla and Chittagong ports, which presents a tremendous opportunity for Bangladesh's economy. However, currently, the transit facilities at these ports are being provided at nominal rates, which are not sufficient compared to the potential benefits for the country. This facility can be used as a powerful tool to boost Bangladesh's economic development, but this requires an increase in transit fees and proper control over its management.

In the age of globalization, the economy is like a game of chess, where policymakers make moves at their discretion. India’s decision to stop transshipment is a move in its own national interest. This is called Geo-Politics.

India’s decision presents a challenge for Bangladesh, but it can also be seen as an opportunity. With the right steps, Bangladesh can not only overcome this setback but also position itself more powerfully in the future. The time has come for Bangladesh to stand on its own feet. At the same time, there is an increasing need for policy reforms in Bangladesh. It’s not just the garment industry that needs attention; timely steps should be taken for other sectors as well. Attracting more foreign investment and quickly implementing FTAs will further strengthen Bangladesh’s economy.

The writer is  a columnist, student, English Department, Gopalgonj Science and Technology University.