‘This is the best phase of Indo-Bangla relationship’

What is the economic significance of Prime Minister Narendra Modi’s Dhaka visit?

Sreeradha Datta, Director of Kolkata-based Maulana Abul Kalam Azad Institute of Asian Studies (MAKAIAS), in an interview with BusinessLine, discusses the significant shift in India’s foreign policy. India is now pushing for a regional cooperation initiative on the East that will be more effective than SAARC and open land routes to ASEAN. Edited excerpts:

How would you describe the current phase of India-Bangladesh relationship?

This is the best phase in our bi-lateral relationship. We had a very good political relationship in the initial years but in terms of actual work done, this is the best phase ever. India’s engagement in infrastructure building in Bangladesh and the electricity trade between the two nations are major breakthroughs of this phase. The electricity trade, in particular, is the biggest takeaway.

Historically, our bi-lateral relationship improves whenever Sheikh Hasina is in power in Dhaka. How can we make it an all-weather relationship?

That is the key. The relationship between the two countries should be cordial irrespective of the government in power, either in Delhi or Dhaka.

Better connectivity and economic cooperation, not merely bi-laterally but within the region, should create an economic dynamism that no subsequent government would be able to roll back.

Did growth paradigm in India and Bangladesh force a change in policy decision?

True. In last six years India realised the importance of the South Asian markets. It may be a smaller market compared to Europe or North America but there is huge potential which we are missing out.

More importantly, India-Bangladesh cooperation creates a market that is linked to the thriving South-East Asian market. I think both India and Bangladesh are interested in tapping the opportunity.

What is the prime mover behind India’s sub-regional cooperation initiative with Bangladesh, Bhutan and Nepal (BBIN). Is BBIN a future trade block within SAARC?

I don’t know whether you can call BBIN a trade block. But it is a group which can facilitate economic cooperation quicker than SAARC has been able to.

These four economies are geographically connected and on the same page on many issues. Secondly, a huge positive we are looking at is the common energy grid. Going forward, India can facilitate such trade between the group nations.

That is one story that nobody had looked into very deeply in the past. India was always reluctant to enter regional agreements. Now they realise the positives of building a regional market.

Also the smaller neighbours are comfortable working with India.

Does it mean dilution of India’s proverbial Af-Pak focus in diplomacy? Is the ‘Look East’ campaign finally coming of age?

Actually I am happy that there is not much mention of Af-Pak in the newspapers these days.

Coming back to the Look East policy, I think the campaign has been doing fabulously well. Our engagement with ASEAN has grown phenomenally in the last decade. The only problem, however, is the campaign was not working through north-east route. We were not able to connect South Asia by land route through NE, due to lack of infrastructure.

We are now building that bridge.

We are going to allow free movement of vehicles through the region. Will it boost India’s trade with ASEAN?

I don’t foresee it taking off immediately. So far the roads are tracked through the BCIM (Bangladesh–China–India–Myanmar Forum for Regional Cooperation) rally. But there are still regulatory and infrastructure issues plaguing the route.

For connectivity to ASEAN, Myanmar needs to join the group. Any effort to bring Bangladesh and Myanmar on the same page?

I take pride in MAKAIAS for helping initiate the political dialogue. We, in collaboration with Dhaka University, RDC and other bodies, organised a meeting in Dhaka in April.

Finally, what is the strategic driver for India’s cooperation initiative?

In 2009, when Sheikh Hasina came to power, she ensured wiping out the anti-India terrorist activities in Bangladesh.

Once the security concern was addressed, India had to look at the larger picture.

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