Tensions between India and Bangladesh have led to a 20% drop in cargo movement via the Indo-Bangladesh Protocol Route (IBPR) and the temporary curtailment of the MV Ganga Vilas cruise. India’s ministries have adopted a cautious stance on shared investment and infrastructure projects involving Bangladesh.
Bookings for the Ganga Vilas cruise are now restricted to the Indian leg, avoiding Bangladeshi waters. This decision affects the full Varanasi-Dibrugarh route via National Waterways 1 and 2. Meanwhile, eight river cruises continue to operate on Indian routes such as Varanasi to Kolkata.
Officials noted uncertainty over the long-term viability of shared water routes, particularly after India restricted Bangladeshi apparel imports. Plans to promote inland water transport with 35% incentives for cargo shippers remain in place, including scheduled services between Kolkata and Varanasi. However, infrastructure development in ports like Mongla and Chittagong remains stalled amid growing geopolitical caution.