Building mutual confidence through dialogue and diplomacy, both India and Bangladesh have grown in exemplary ways. Deepening trade and transport linkages remain a priority for both nations. However, in the face of a mutating Covid-19 and imminent climate risks, enabling a green, inclusive and resilient economic transition is essential.

India and Bangladesh should not only make mutual progress but also chart a pathway for others in the Bay of Bengal region to follow.

There is a tremendous scope for voluntary, non-binding G20 principles for quality infrastructure investment, among others, to be the guiding force. For example, by building infrastructure resilience to threats posed by rising sea-levels, particularly to a relatively more vulnerable Bangladesh. Not only will this ensure a “positive economic, environment, social and development impact of infrastructure development but also create a virtuous cycle of economic activities,” while making infrastructure investments attractive.

Development of greenfield deep sea ports in Matarbari in Bangladesh and a proposed transhipment port at Great Nicobar Island in India could underpin that potential. Bilateral efforts in operating, advancing and making navigable their trans-boundary rivers, and reviving and developing rail links are among growing avenues of making greater climate mitigation strides.

The scale is huge as India and Bangladesh continue to diversify their trade and transport linkages to the Bay of Bengal. It is equally reinforcing for existing road-based and emerging inter-modal transit options for the landlocked Bhutan and Nepal.

Bilateral reforms viz., the Protocol on Inland Water Transit & Trade and the Coastal Shipping Agreement, could also provide better prospects for recovery and growth for these countries. Such initiatives also underpin greater economic synchronisation in the region — a 2020 Bangladesh-Bhutan Preferential Trade Agreement, for example. Inauguration of a new passenger train, Mitali Express, between New Jalpaiguri (India) and Dhaka (Bangladesh) has galvanised prospects for a wide-ranging, intra-regional, electric-rail passenger and freight logistics transformation.

Landlocked Bhutan, Nepal and the the north-eastern States of India could potentially, via the Siliguri Corridor, get rail-based access to markets (and vice-versa) and ports in Bangladesh.

Addressing the infrastructure gaps and developing new rail networks with an integrated electric transformation focus, while electrifying the existing ones, remain vital. It could provide a basis for developing cold supply chains for perishable fruits and vegetables, temperature sensitive commodities, products and medicines.

Similarly, the India-Bangladesh Friendship Bridge at Sabroom in Tripura land-links the North-East to the Bay of Bengal through Bangladesh’s Chattogram port. Sabroom is around 72 km from the port. New and potential transport and logistics linkages could be developed with green principles to enhance their competitiveness.

As bilateral connectivity linkages deepen, India and Bangladesh could prioritise and advance a clean, renewable energy and digital infrastructure supported transition.

Boosting vessels and vehicles manufacturing, which makes them adaptable to cleaner fuels, and infrastructure capacity are equally important. Reinforcing digital infrastructure investments and making progress in digital trade facilitation measures could help the two countries decouple emissions from economic growth.

A proposed India-Bangladesh Comprehensive Economic Partnership Agreement could enable a green framework for bilateral trade and economic relations. This could help Bangladesh emerge stronger during its transition into a developing country in a few years.

The writer is a Jaipur-based global economic and strategic affairs analyst

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