Nahian Reza Sabriet
India’s External Affairs Minister Dr. S Jaishankar’s visit to Bangladesh today is expected to invigorate the glorified diplomatic momentum between the two neighboring countries. As part of India’s “neighborhood first” policy, the importance of trade, connectivity and development aspects has been manifested in Dr. Jaishankar’s visits to Maldives and Sri Lanka earlier in March. To facilitate Bangladesh-India relationship, these are also some vital areas where further emphasis is needed.
With strong historical and civilizational connects, Indo-Bangladesh partnership is constantly evolving. In 2022, the relationship has taken a new route. After two years of global pandemic, convergence of interests between two neighboring countries is not something to expect habitually. But Bangladesh and India have shown how this can be done through constant engagements in connectivity, trade and security sectors. Both the countries represent two of the fastest growing economies with ample and unique human resources. The relation is a perfect combination of geopolitical and geo-economic stakes meeting at developmental crossroads.
Connectivity
Connectivity between Bangladesh and India involves both hard and soft infrastructure. The first one signifies physical infrastructures like transport and telecommunications networks, and the latter refers to policy frameworks, reforms, and trade facilitation initiatives.
Bangladesh provides India with a natural gateway to Southeast Asia. It has the potential to become a transportation hub and a natural route towards the Southeast Asian market. In March 2021, Bangladesh Prime Minister Sheikh Hasina and Indian Prime Minister Narendra Modi inaugurated the Maitri Setu or Friendship Bridge over the Feni River which connects India’s Northeast (Sabroom) to Bangladesh’s Southeast (Ramgarh). This 1.9 km bridge also complements the economic activities through Tripura’s first-ever Special Economic Zone (SEZ) at Sabroom. Bangladesh and India have recently launched freight trains through the Chilahati-Haldibari Rail Route, adding one more to the preexisting four operational rail links between the two countries. This initiative also brings weight to the civilizational linkage mentioned above, since it restores the pre-1965 railway routes between Bangladesh and India. Among other priority projects, two Asian Highway Network routes connecting the Petrapole-Benapole, Fulbari-Banglabandha and Dawki-Tamabil points as well as the Akhaura-Agartala rail links are important.
“Inland Waterways” is the new connectivity buzzword in this realm. Navigation between the national waterways of Bangladesh and India have been targeted to boost connectivity, which incorporate Indo-Bangladesh protocol routes. These protocol routes will also facilitate vessel navigation through the fairways in the Sundarbans.
Bangladesh is interested in joining the India-Myanmar-Thailand Trilateral Highway Project which will connect it further to Southeast Asia by road. Among other regional initiatives, the 2015 BBIN (Bangladesh, Bhutan, India, and Nepal) Motor Vehicles Agreement has ambitions to lift restrictions on passengers and cargo movements. With Bhutan as an observer, Bangladesh, Nepal and India have finalized the memorandum of understanding (MoU) for the implementation of the BBIN-MVA on 7 and 8 March 2022. This agreement comprises exchange of traffic rights and development of functional transport corridors among the member states. This corridor will eventually be transformed into economic corridors coupling trade and connectivity interests together.
However, focusing on connectivity modules also require development of soft infrastructure. Congestion at land-based ports is a common issue. Thus, utilizing coastal shipping and improvement of port facilities, including digitalization should be in priority list. India and Bangladesh have already prepared the 2015 Coastal Shipping Agreement which hence can work as a basis for these schemes.
Trade and Investment
Transborder trade and investment opportunities are backbone of transnational relationship. Bangladesh now belongs to the list of India’s top five export destinations. According to the data provided by the Ministry of Commerce of Bangladesh, in the FY 2021-22, India’s exports to Bangladesh was US$14.09 Billion, increased by 64.5 per cent compared to FY2020-21. In FY 2020-21, Bangladesh’s export to India was US$1.01B. As per the reports of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), for the first time Bangladeshi exports to the Indian markets may reach US$2 billion in the following FY.
Special Economic Zones (SEZs) are crucial when it comes to trade and investment. Bangladesh opened up three SEZs for Indian investors: Bheramara (Kushtia), Mirsharai (Chattogram) and Mongla (Bagerhat). After offering these zones, Bangladesh Investment Development Authority (BIDA) had more than US$3 billion worth of proposals registered in FY2016-17. BEZA and Adani Ports & SEZ Ltd. from India have recently joined for the development of an Indian SEZ at Bangabandhu Sheikh Mujib Shilpa Nagar. The project includes US$115 million Indian line of credit (LoC) and the sum of cost will be around BDT964 crore.
However, non-tariff measures (NTMs) and non-tariff barriers (NTBs) are still sources of negative concussions in the trade relations between Bangladesh and India. While these are important to take into consideration, facilitating economic partnership will require cooperation between Bangladesh Standards & Testing Institution (BSTI) and Bureau of Indian Standards (BIS). Utilizing value-chain-led product development and export diversification can help with the existing trade deficit. Not to forget, Bangladesh’s gradation from the least developed country (LDC) status will need strong post-LDC strategies. India has to comply with the changes and policies adopted for facilitating cross-border trade relations. Bangladesh and India have also recently made decision to finalize joint study on India-Bangladesh Comprehensive Economic Partnership Agreement (CEPA) which is a notable progress.
Security
Security cooperation between India and Bangladesh have also reached new heights. While the 2014 transboundary maritime dispute settlement and the 2015 exchange of enclaves signify maturity in the security perceptions, several high-level visits consolidate security partnerships to a greater extent. The two countries have completed the ninth edition of their joint military training called Sampriti in 2020. The latest edition focused on countering terrorism and transnational crime. This shows how the two countries are now looking beyond traditional focus of defense cooperation, aiming at non-traditional security threats.
Prime Minister Sheikh Hasina’s visit to India in 2017 ensured a number of MoUs in relevant security sectors, including defence cooperation, strategic operational studies, extension of a US$500m line of credit for defense purchase and collaborations between the coast guards of the two countries. The Indian Prime Minister’s visit to Bangladesh in 2021 also included MoUs between the National Cadet Corps of Bangladesh and India.
Although border-killings have been constant nibblers in the trajectory, the Border Guards Bangladesh (BGB) and the Border Security Force (BSF) of India are expected to work together under the Comprehensive Border Management Plan aiming at peaceful border management.
In conclusion, it is not an overstatement to declare that Bangladesh-India partnership is one of its kind. It indeed provides an archetype of diplomatic and strategic modeling for neighboring countries. In terms of connectivity, trade and security, the partnership holds strong future. What is important is to ensure proper and timely implementation of the initiatives taken and deliverance of the materials.
Nahian Reza Sabriet is Research Officer, Bangladesh Institute of International and Strategic Studies (BIISS)
