Earlier on May 20, Indian High Commissioner Ms Riva Ganguly Das and Mohammad Mezbahuddin Choudhury on behalf of Bangladesh Inland Waterways Ministry signed an agreement, following prolonged negotiations. In recent times, both Delhi and Dhaka have been at pains to increase import/export trade by developing easy bilateral movement of goods by sea, rail, air and common inland rivers.

However on an experimental basis, ships and barges carrying cement, rice and equipment for industries had been sent to Tripura from Kolkata/Haldia ports earlier, through Bangladesh waters. . Such movements happened after Dhaka had granted transshipment rights to India in 2015, followed by a protocol signed in 2018.Bangladesh used its ships to carry fly ash from India.

Since annual Indo-Bangla bilateral trade currently stands at over $11billion, rising from$3.6 billion in 2008, clearly this sector of the economy has major growth potential.

Oddly enough, the present move to bolster volume of business by using other channels than the existing land route has not occurred because of economic reasons only. Increasing harassment faced by operators from anti- socials and poor road conditions mostly in West Bengal, resulting in frequent work disruptions at the Petrapole/Benapole integrated checkpost in North 24 Parganas about 89 kilometers from greater Kolkata , was a major reason .Bengal Government’s steadfast refusal to help Indian and Bangladeshi industrialists despite repeated requests and its ignoring of urgent messages from the Union Home Ministry further complicated matters.

The logistical importance of the Petrapole/Benapole checkpost cannot be overemphasized. According to some reports, by 2017 it handled around 35 per cent of the Indo-Bangla export/import trade, in financial terms amounting to an annual transaction of around Rs 23,000 crore. This would have increased significantly by now, as economic contact between the two countries has become easier than before. Among the network of existing integrated checkposts, it is by far the biggest. According to one estimate, over 47 per cent of the export/import trade is done along the land routes lining Bangladesh and India.

Now this share is likely to reduce significantly, as policymakers on both sides of the border, as well as investors and businessmen, gear up to switch to a more hassle-free movement of goods by using coastal shipping, inland water transport and the Railways. Already there has occurred during the last few days, some increase in goods being moved by rail between the two countries.

Especially during the past year, the handling and movement of import and export items at Petrapole had been severely affected for a variety of reasons. The Corona pandemic acted as the last straw that broke the camel’s back. , A constant irritant for operators was an alleged lack of co-operation from the West Bengal police. There was no check on the activities of local gangs of armed extortionists. They made it difficult for truck drivers of both countries to operate. Delivery schedules of many items were repeatedly disrupted. Several appeals to Kolkata authorities by Bangladeshi and Indian Chambers of Commerce and the union Home Ministry, Delhi, had no effect. Sadly all was happening just as the volume of bilateral trade between India and Bangladesh was poised for a major increase.

And the key factor to this is the unexpected resilience of the Bangladesh economy. In the opinion of HSBC experts, the Bangladeshi economy has weathered the international economic slowdown better than other countries. Its performance is still among the best in South Asia — which may come as a revelation to policy-makers in Delhi and elsewhere. It continues to enjoy the confidence of major international investors even during the current pandemic.

The GOI also deserves credit. The first and essential condition to ensure a more robust bilateral trade was a warm relationship and healthy ties between the two countries. It attests to the acumen of both governments that over the past decade, this has become possible. Also commendable is the urgency shown by India in recent years to begin work on a slew of road, railway and inland water development projects. Delhi’s efforts earned some appreciation in Bangladesh and Myanmar for its help in developing their infrastructure.

With massive Indian population of1.3 billion people (and Bangladesh, of around 160 million people), both countries have a sizable middle class of which a large segment consists of aspirational, educated youths. Both countries earn hefty remittance incomes annually, through an army of migrant workers who work mostly in advanced countries. Over a 12 month long period, Bangladesh has improved on its remittance earnings, approaching nearly $35 billion. Both countries possess a growing, more demanding, domestic market. India’s manufacturing sector is both older and much bigger than that of Bangladesh for historical reasons.

But over the years Bangladesh has expanded its manufacturing sector remarkably. Its daily power consumption has risen from barely 12000 megawatts five years ago to over 25,000 MWs now, with a demand already approaching 30,000 MWs. Its manufacturing sector produces items like industrial robots it exports to South Korea, refrigerators and ships and shipping vessels for India, not to mention chemicals, medicines, processed food, handicrafts jute and leather items. It has a 30 million strong middle class and 110 million internet users . Good bilateral relations ensure a win -win situation for both: Bangladesh gets access to the vast Indian market, which boasts the third largest economy in the world in PPP terms, while India gets access to a robust growing economy of160 million people right next door!

Further 70 companies from South Korea have decided to shift base from Myanmar to Bangladesh, largely attracted by more favourable operating conditions. Some have viewed likely plots in the Chittagong area because of the proximity of the port. Media reports suggest that30-odd Japanese companies seeking to relocate their production facilities of China to escape the crippling anti-China sanctions imposed by the US, are considering a shift to Bangladesh. China is worried about such outsourcing. In the case of the Japanese companies quitting China the Japanese Government provides incentives for their relocation. Despite this, China has requested Dhaka to provide plots to set up three special economic zones

Given such favourable conditions and India’s ongoing LookEast programme, there should have been no problems in increasing bilateral trade along the land routes. The fault lay mainly in West Bengal. First, the border road connecting greater Kolkata is narrow, and traffic congestions persisted. Lack of adequate traffic space for trucks led to a delay of 10 days on average for operators had to pay Rs 5000 daily for this. Further, truck drivers are harassed allegedly by scores of armed anti-socials enjoying police and other protection, at many points (thanks to the notorious ‘tolabazi’ or extortion factor in Bengal).

Bangladeshi exporters/importers as well as outstation truck drivers from Andhra Pradesh, Odisha, Haryana and Punjab have complained against such trends. The Association of outstation truck operators have just threatened to stop sending their vehicles to Bengal if the Government takes no action. Massive amounts are collected forcible by local goons and complaints to the police make no difference.

No wonder Bangladesh and Indian Government authorities have joined forces and decided to use the inland river waterways and the Railway in a more major way. Already, a few trains have been run on a trial basis. Business sources agree that their goods are better protected, less time is taken and trips are usually hassle-free.

However, the gains made by the Railways and inland waterways authorities may lead to a slump in the volume of business and traffic of Export/import items handled by the staff and assorted other workers, traditionally active in the land routes in both countries. (IPA Service)