India’s revocation of the transshipment facility for Bangladesh in April 2025 has significantly impacted Bangladesh’s $50 billion RMG export sector, raising logistics costs by 15-20% and increasing delays at ports like Chittagong. Exporters now face rising freight charges, supply chain strain, and declining competitiveness.

Strategic alternatives include deep-sea port development (Payra, Matarbari), using Colombo Port, leveraging China-Myanmar corridors, and regional air freight options. However, these face cost, time, and geopolitical hurdles. Regional influence is also waning as Bangladesh loses trade leverage in SAARC.

Indian exporters are gaining market share, while Indian logistics firms shift to Southeast Asian markets. Professionals must diversify routes, optimize domestic infrastructure, and manage geopolitical risks to navigate the disruption and safeguard export momentum.