India’s transit facility to boost Bangladesh’s trade

While the world is currently going through economic and political turbulence, the visit of PM Sheikh Hasina to India was aimed at securing a tested friendship and ensuring economic cooperation that would be crucial to fend off economic headwind in the days to come.

During the India tour, several MoUs were signed with the objective of uniting the two nations in facing tough times ahead.

All this is commendable and Bangladesh also comes back with the Indian promise of allowing her territory to facilitate Bangladesh’s trade with landlocked countries of Nepal and Bhutan.

As per a recent report published in this daily, India has offered free transit via its territory to Bangladesh, aiming to help the country export products to other destinations through specific land customs stations, airports and seaports.

As part of the initiative, Indian stakeholders invited the Bangladesh business community to use the neighbouring country’s port infrastructure for transshipment to other destinations.

Bangladesh also requested rail connectivity with Bhutan through the newly inaugurated Chilahati-Haldibari route. Reportedly, India has said she will give the request full consideration, taking into cognizance its feasibility and viability.

The Export Promotion Bureau (EPB) data shows that Bangladesh exported goods worth $9.5 million to Bhutan, and $106 million to Nepal in FY22. These figures were around $7 million and $69 million in FY21 respectively.

There is clear indication that demand for Bangladeshi goods has risen in the landlocked nations and once the transit facility is implemented, the trade volume plus tourism will see a boom.

However, the agreement on paper needs to be implemented and not gather dust. Just singing MoUs do not indicate any concrete result; it’s just the formalising of a future move.

Therefore, the sooner the transit happens the better. With economies everywhere feeling ripples of the war in Europe, the sooner this sees material form the better.

To increase the volume of trade with the landlocked regional nations, Bangladesh can also give serious thought to opening up special economic zones in these nations. Before the PM’s visit the CEPA, Comprehensive Economic Partnership Agreement, was discussed extensively and it’s safe to state that the transit facility will be part of it.

The trade with Nepal and Bhutan will also support these countries since they have are also facing the consequences of the ongoing war.

To expedite the transit facility, both Bhutan and Nepal need to make immediate request to India.

In a situation of crisis, countries will have to rely on each other and in that spirit of regional camaraderie, all countries must realise the importance of unity, compassion and magnanimity.

During talks with India, Bangladesh reiterated its eagerness to partner up in the ongoing initiative of the India – Myanmar – Thailand trilateral highway project which again will provide an impetus to trade.

It won’t be an exaggeration to state that a lot depends on how India decided to act on the deals. Procrastination will only add more despair while swift action will prove India’s commitment to Bangladesh and her neighbours.

Since global commerce has taken a massive hit, discussions about regional economic zones where all South Asian nations will unite to form one economic force, can be food for thought.

With the India tour over in a marked spirit of bon homie, the next step would be to see the agreements come into fruition. The transit will certainly help Bangladesh while rail link with Bhutan will provide a fillip to commerce.  

The main export items to Bhutan include milk products and a swift trade link will allow such items to reach the destination without concern about products becoming stale.