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India is bracing some impact and “disruption” on the Indo-Bangladesh Protocol Routes – connecting the North Eastern region of the sub-continent through Bangladesh’s waterways – as it withdraws trans-shipment arrangements and other trade restrictions (like use of specific ports for garment shipments or blocking flow of item into North Eastern region through the neighbouring country.
According to Sarbananda Sonowal, Union Minister for Ports, Shipping, and Waterways, “connectivity to the North East through IBP will also be disrupted”.
“With the withdrawal of the transshipment arrangement or provision to Bangladesh, trade on the Indo-Bangladesh Protocol (IBP) routes connecting Kolkata to the North Eastern Region will be affected,”he told businessline in an interview.
Cargo volumes via the IBP routes are down 20 per cent sources said, while MV Ganga Vilas – the world’s longest cruise – is eyeing a truncated route, avoiding Bangladesh waters. In fact, bookings for the cruise are yet to happen, sources said.
Trade Retaliation
India formally ended the transshipment agreement with Bangladesh, effective April 8. The agreement which allowed Bangladesh to exports to third countries by transiting through Indian land customs stations. It facilitated the movement of goods from Bangladesh to ports and airports in India for onward shipment to destinations in Europe, West Asia, and beyond. India cited logistical challenges, including congestion at Indian ports and airports, as the primary reason for revocation .
Later that month, Dhaka announced closure of land ports to Indian year exports; disrupting supply chains to textile mills here, especially those producing dyed and value-added yarns.
Subsequently, India responded with a trade countermeasure – cutting off land port access for Bangladesh’s ready-made garments.
The restrictions are significant. India has now limited Bangladeshi ready made garment shipments to just two ports—Kolkata and Nhava Sheva—effectively shutting out all 11 land customs points in the Northeast, including those in Tripura, Assam, Meghalaya, Mizoram, and West Bengal’s Phulbari and Changrabandha. TOther key Bangladeshi exports—including plastics, processed food, carbonated drinks, cotton, and wooden furniture—will also face the ban.
On the other hand, the IBP waterways, or Indo-Bangladesh Protocol (IBP) route, is a system of inland waterways connecting India and Bangladesh. It facilitates the movement of goods and people between the two countries, primarily through shared river systems like the Ganga, Brahmaputra and Barak in India and Jamuna, Meghna and Gumti in Bangladesh.
Impact on IBP
Sonowal said, the main trade on the IBP route is the export of fly ash from power plants in West Bengal to Bangladesh. Currently, nearly 4.47 million tons of fly ash are being evacuated from these power plants. The discontinuation of fly ash transportation from West Bengal to Bangladesh will adversely impact the operation of thermal power plants.
“Additionally, connectivity to the North East through the IBP route will also be disrupted,” he said.
As part of the IBP route, India also has access to Bangladesh’s Mongla Port. It has a berth for inland vessels. And operations here are likely to be impacted too.
“Mongla Port which lies on the IBP route and has a separate berth for inland vessels, will also be affected by the disruption of trade between Kolkata and MonglaPort via the IBP route,” Sonowal said.
Published on June 8, 2025
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