Flawless transport connectivity between India and Bangladesh has the potential to increase national income of Bangladesh by 17 percent and 8 percent in India, according to a World Bank report.
In the report the Washington-based development partner said improved transport connectivity between India and Bangladesh could increase India’s export by 172 percent while Bangladesh export to India could almost rise three times.
Pointing out the scale of bilateral trade, the WB said that it accounts for 10 percent of Bangladesh trade while it is just about 1 percent for India. It called for boosting bilateral trade by removing tariff and non-tariff barriers.
The report titled "Connecting to Thrive: Challenges and Opportunities of Transport Integration in Eastern South Asia," was launched recently.
The WB has analysed the Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicles Agreement (MVA), compared it with international best practices, and identified its strength as well as gaps for seamless regional connectivity.
The report called for strengthening of the MVA signed in 2015 as it is the cornerstone of the cross border integrated transport market in the sub-region.
"Geographically Bangladesh is placed as a strategic gateway to India, Nepal, Bhutan and other East Asian countries. Bangladesh can become an economic powerhouse by improving regional trade, transit and logistics networks," said Mercy Tembon, World Bank Country Director for Bangladesh and Bhutan.
World Bank Country Director for India Junaid Ahmad said that the realisation of the developmental potential of the two countries requires investment in connectivity.
Citing problems in transit of trucks, the report pointed out that it adds substantially to time of transportation and cost. All districts in Bangladesh would benefit from integration while Indian states bordering Bangladesh will also gain substantially with seamless connectivity, it added.
To improve the rural road network, Bangladesh government signed an agreement with the World Bank last month for the upgradation of rural roads and connectivity in the western region.
The project is expected to benefit over 20 million people in the western region of Bangladesh, according to the WB.
The project will help upgrade the 48 kilometre two-lane Jashore-Jhenaidah road to a modern 4-lane highway.
It will also help improve 600 kilometre of connecting rural roads and build or develop new rural markets. The project will finance installation of fiber-optic cables along the highway to ensure fast and reliable internet service, said the WB.
The project envisages setting up of separate lanes for slow moving vehicles to reduce accidents along highways. It will also install road crash barriers, signage and safe crossing facilities for pedestrians.
The project is the first of a multi-phased US$1.4 billion 10-year program to upgrade the existing 110 kilometre two-lane highway, Bhomra-Satkhira-Navaron and Jashore-Jhenaidah.
In the current phase, the project will be implemented in four districts namely Jashore, Jhenaidah, Magura, and Chuadanga.
