Eastward Ho! The future of Trade and Investment between Northeast India and Bangladesh

 

The age old ties between India and Bangladesh have withstood many challenges. History has been witness to the social, cultural and economic bonding of New Delhi with Dhaka.

The relation of northeast India with Bangladesh occupies a special place in the history of both the countries. Since Bangladesh was originally a part of undivided India, many  eminent personalities from the region have studied in Dhaka University. Even now  there is cross border relations between close relatives and friends of the two countries. The culture of Northeast, especially Assam, is quite similar to that of Bangladesh, with the same fondness for fish and fish products and music inspired by the Brahmaputra, known as Padma in Bangladesh.

 The future of Northeast India and Bangladesh looks bright with emerging partnerships and associations in different fields. In this context I would like to highlight a few significant steps that have been taken over the years to enhance connectivity, trade and investment.

The opening up of the Assistant Bangladesh High Commission office in Guwahati for access to the entire northeast region is a single major step in this direction. The recent opening up of waterways and identifying of the eight routes to connect Bangladesh with the northeast region is a significant step. Last year the two sides finalised the standard operating procedure (SOP) for the use of the Chattogram and Mongla ports for the movement of goods particularly to and from the Northeastern region. Earlier the two countries signed an agreement on coastal shipping in 2015 and the use of Chattogrom and Mongla ports for transhipment of goods to and from India in 2018 where Bangladesh and India will enhance cooperation in trade in Shipping and Inland waterways. Another significant development took place during the Bangladesh premier’s last visit to New Delhi. An  agreement was inked which enables Sabroom of the southernmost Tripura to withdraw water from the Bangladesh portion of the river Feni. 

 The land route connectivity between Bangladesh and the northeast part of India amidst hiccups did see significant progress where the Kolkata – Dhaka – Agartala and the Dhaka – Shillong – Guwahati bus routes were launched.

 The most significant of all connectivity especially trade amidst constant hurdles and local border issues are the border trade which seriously needs to be highlighted. As an advisor and consultant to a few trade bodies I feel this should be the priority of both the governments. All land border trade have their own set of challenges. Some of the border areas facing such challenges  is the Tamabil border in Mehalaya’s Jaintia hills, the Dalu border in Meghalaya’s Garo hills and the Sutarkandi land border in Karimganj and Dhubri ( both land and waterways) both in Assam, to name a few.

 The border town of Dawki (Tamabil) is a strategic land border hub with Bangladesh in Jaintia hills in Meghalaya. It is approximately 85 kms from the capital Shillong. The border haat at Lyngkhat bordering Muktapur in Bangladesh which is approximately 18 kms from Dawki plays an important trade point for both trades from India and Bangladesh.

The export basket so far from the Tamabil land border station has been coal ( till the time coal mining has stopped) boulders and limestone, both from the Khasi and Jaintia hills. The products imported  from Bangladesh are agro-based products, garments etc. mostly through the border haat.

 It is noteworthy that Tamabil is the busiest Indo – Bangladesh border trade route after Benapur in West Bengal. The Remington steel bridge over river Umngot is the lifeline between the Khasi and Jaintia hills. Issues I feel that need to be addressed to upgrade the border and utilise the resources to the fullest are:

 The border roads needs to be developed more keeping in mind the bolder carrying trucks plying everyday both from Khasi and Jaintia hills.

·         The bridge over river Umngot serves as a lifeline between both Khasi and Jaintia hills. So there is an urgent need to have an alternative concrete bridge to cater to both the commercial vehicles and daily commuters including tourists, both Indian and Bangladeshis who visit the Umngot river known for its pristine water for boating and recreational sports.

·         The custom clearance system at the land customs office at the Tamabil border needs to be upgraded further for faster mobility of the commercial trucks. I was informed that commercial trucks from both Khasi and Jaintia hills divide border crossing time to avoid congestion.

·         The Immigration system too needs to be upgraded for day trip tourists from Bangladesh, especially during their national holidays and weekends.

·         Last but not the least a Meghalaya Tourist information office to promote tourism along with good eateries along the border check point is the need of the hour. 

The border town of Dalu in Garo hills can be the first preferred nearest international border to the North East’s business Hub, Guwahati. One can travel by road from Guwahati to Tura in four hours and Tura to Dalu in around two hours. From the border in Bangladesh’s Naltabari in Nakugaon  it is three hours by road to the capital city, Dhaka.  So one can travel from Guwahati to Dhaka in approximately 10 hours- this is possible and very much doable.

 Dalu is a quiet border town ever since coal exports stopped and a very small volume of bolder exports takes place. Coal and boulders are the only two main  products that are exported not only from Dalu but also through the other three international borders of Ghachupara, Bagmara and Mahindraganj. For the region to  avail the benefit of border trade a few issues need to be addressed.

 

• Look beyond the usual coal and boulder exports. The exports of ginger, oranges etc. can also be encouraged from Dalu. Imports of plastic products, cement, refined oil, mosquito nets  etc. take place from this border town. We can also encourage fish imports on the lines of the Tripura border.
• Upgrading and modernisation of the existing Warehouse facility in Khilapara will boost storage system in the border area.
• Setting up of border haats in Dalu will help on the lines of the Moreh haats in Manipur will boost people’s interaction and trade and commerce.
• The Meghalaya Government should step in to revive the abandoned Baljeik  airport in consultancy with the Ministry of Civil Aviation.
• Dalu has the potential to be a big business hub followed by Ghachupara ( having two entry and exit points),Bagmara and Mahindraganj all having international borders with Bangladesh keeping in mind the steady rise of the GDP of Bangladesh.

 

The Northeast region of India has many challenges which are different from the rest of the country. Developing the infrastructure in the hilly terrain is an uphill task for the land port authorities. For instance, the lifeline to the Tamabil border is the Umgot bridge which connects Khasi hills with Jaintia hills. The Tamabil border is famous for coal and boulder exports. As of now only boulders are being exported. The Umgot bridge is very old but sustainable so far but an alternative concrete bridge must be built for smooth running of the border trade which generates good foreign exchange for the state and country and provides a major employment opportunity for people of both Khasi and Jaintia hills.

 The bilateral trade deficit is a contentious issue that poses a challenge to regional co-operation. The lack of export competitiveness and match to Bangladesh’s exports to India, especially in the garments sector as compared to Indian imports are a few issues that needs to be seriously addressed for better ties in the field of trade and investment.

 Bangladesh is India’s biggest trading partner in South Asia. India’s exports to Bangladesh stood over USD 9.21 billion in 2018-19 and imports was USD 1.04 billion in the same period. The prospects for the future of both the nations lie in jointly working on a road map where people from either side share a good cordial relation with easy visa formalities. The first people to people access is through tourism which plays and will always play a crucial role. Bangladesh’s easy access to Meghalaya can be a big boon to tourism in Meghalaya. The state of Mizoram can also work in this direction because the state has close proximity to Chattogram and its port in Bangladesh. Besides organising tour packages the Northeastern states can promote adventure tourism taking advantage of the natural hilly terrain with its rich flora and fauna.

 A joint committee of Bangladesh – Northeast India  should be set up comprising of people engaged in Trade, Tourism and Investment  with regular meetings exclusively to highlight issues that need to be taken up for the smooth functioning of their respective activities. The upgrade for swift clearance for Land and waterways customs for easy movement of goods will be a major step in that direction. Interaction from both countries must be encouraged to boost investment in sectors with the right expertise e.g. India in IT and food processing while Bangladesh in the garments industry etc.

 Upgrading the existing border haats and adding new ones with basic facilities on either side of the international border will help flourish border trade to sell local produce and generate self employment among the local population.

 Promotion of free trade will enhance trade and economic cooperation and bilateral trade where each economy produces goods by utilising their own strength in their field as well as the other country’s technology thus opening their markets to each other.     

 Shah Md. Farid is also a trade and investment consultant and advisor to the Garo Hills Border Trade and Chamber of Commerce, Meghalaya and Border Trade and Chamber of Commerce, Moreh town, Manipur.