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INDIA-BANGLADESH CONNECTIVITY BLESSING FOR BOTH
The Morning Standard
|November 18, 2023
New infrastructure projects between the neighbours will reduce costs and delays. But a cloud hangs over how Bangladesh conducts its elections in January
CONNECTIVITY and energy security have occupied centre-stage in India-Bangladesh bilateral ties over the last two decades. On November 1, Indian Prime Minister Narendra Modi and Bangladesh Prime Minister Sheikh Hasina jointly inaugurated via video conferencing the Agartala-Akhaura rail link, the Khulna-Mongla port broad gauge rail link and the start of the second unit of the Maitree Super thermal power plant. The plant is a 50:50 joint venture between India's National Thermal Power Corporation and the Bangladesh Power Development Board.
Most bilateral connectivity projects have been implemented with the help of India's concessional lines of credit and grants.
The Agartala-Akhaura link and Maitri bridge over river Feni will improve connectivity between India's northeastern states.
These projects mark another phase in implementing the strategic decision to integrate bilateral transport and power connectivity. The Padma bridge is a phenomenal achievement in domestic connectivity and will reduce time and cost for exports and imports. Another project that was inaugurated virtually by the two prime ministers earlier this year was the Maitri pipeline, a transborder pipeline funded by India to transport around 1 million metric tonnes of high-speed diesel every year from the Numaligarh refinery in Assam to northern Bangladesh.
Diversified connectivity links have facilitated trade and passenger traffic. Bilateral trade increased substantially to $18 billion in 2021-22, with Bangladesh becoming the fourth-biggest export destination for India.
Connectivity has boosted trade-related logistics and reduced costs. Robust economic growth in both countries has increased merchandise trade in both directions, though Bangladesh has concerns about the adverse trade imbalance. Talks on a Comprehensive Economic Partnership Agreement are going on.
This story is from the November 18, 2023 edition of The Morning Standard.
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