The time is right for India and Bangladesh

Prime Minister Sheikh Hasina’s visit to India after a seven-year hiatus, just ahead of Poila Boishak, Bengali new year, couldn’t have been more opportune.

There are two compelling reasons for renewed bonding between India and Bangladesh.

First, the current dynamics of the relationship are very positive.Currently, the volume of bilateral trade between India and Bangladesh is about $6.6 billion; there are estimates that the trade potential is at least four times the present level.

New Delhi and Dhaka are looking at strengthening economic cooperation through joint investments and cooperation under the ‘Blue Economy’ programme which entails synergised efforts of littoral states in the exploration of hydrocarbons, marine resources, deep-sea fishing, preservation of marine ecology and disaster management.

Secondly, the two countries see themselves converging around a sense of indispensability, not just as neighbours battling the scourge of terrorism, but as leading economic partners whose collective strengths can transform not just their own economies, but also that of the region and the world. As the second fastest-growing economy in the world in 2016 with more than 7 per cent growth, Bangladesh has a firm footing in the global apparel markets and is now a role model for the developing world in poverty reduction, achieving success in health and education and fighting climate change, among others. India continues its run of strong GDP growth with a resilient economy powered by fast paced economic and tax reforms, measures on ease of doing business, increased public investment in infrastructure, opening up of defence, aviation and pharma sectors to 100 per cent foreign direct investment.

These triggers are matched by the contributions of industry bodies that have been nurturing economic relations and undertaking various initiatives with their counterparts in Bangladesh.

India and Bangladesh are pushing for faster and higher growth and this merits a close look at extending support to Bangladesh for infrastructure projects such as improving road capacity in Bangladesh Cooperation in upgrading some customs posts, as well as establishing border markets for vendors along the 4,096-km boundary along with efforts to integrate the region’s economies with road, rail and shipping routes can yield rich dividends. This is a good time for the industry in India to look for opportunities for collaboration in defence, such as in military hardware, space technology, technical assistance, exchange of experience, and development of sea infrastructure.

Connectivity offers a game-changing opportunity for India and Bangladesh. This is pivotal to India’s connectivity with its north-eastern region and with countries of Asean. Equal emphasis on physical and institutional connectivity between India and Bangladesh will facilitate the exploration of more opportunities through trade and investment.

This is particularly important in the context of both the Make in India initiative as well as India’s Act East Policy. The Digital India programme offers tremendous scope for sharing of experiences and greater business engagement.

While energy has witnessed new highs in an exponential expansion of bilateral cooperation, there are rich prospects for an India-driven proposal for a joint venture among BBIN (Bangladesh, Bhutan, India and Nepal) countries. This is a mega cooperation initiative which complements India’s ongoing investments in power joint ventures in Bangladesh.

On the energy front, new opportunities are opening up for energy companies in India in LNG and supply of petroleum products. On a broader canvas, there is tremendous potential held out by the initiative on sub-regional cooperation amond BBIN nations that envisages transport and transit facilitation between the two countries through a motor vehicle agreement. There is much that industry on both sides can work on such as containerised cargo movement, technical assistance and capacity building requirements.

The scope has just got wider with India looking at an expanded sub-regional cooperation among BBIN countries to cover initiatives in rail which would open opportunities in land ports and land customs stations, air connectivity as also the power sector. Industry can be a constructive partner in tapping the opportunities for power trade and inter-grid connectivity cooperation in future power projects, and water resources management among the four countries.

Indeed, Bangladesh and India are at a historic juncture of diplomacy embedded in a rich matrix of history, religion, culture, language and kinship. As we look ahead at a future of shared prosperity, the onus is on our industry and governments to carry forward the aspirations of our people.

The writer is the president of Ficci

COMMENT NOW