India-Bangladesh trade ties are troubled by “poor” rail- and river-connectivity at the region bordering Assam as well as a delay in the operationalisation of four “new” ‘border haats’ (or border markets) at the area bordering Meghalaya.
This is the situation even 20 months after Prime Minister Narendra Modi’s Bangladesh visit that paved way for, among other things, the “historic” ceremony of exchange of instruments of ratification of the India-Bangladesh Land Boundary Agreement, 1974 and its 2011 Protocol. It also resulted in an agreement on several measures to “widen bilateral trade, investment and economic cooperation in a balanced and sustainable manner to mutual benefit but also open up opportunities for regional trade.”
Bangladesh was India’s largest South Asian trading partner in 2015-16 — with bilateral trade worth $6.8 billion that fiscal.
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The trade balance was heavily in favour of India, with its exports of $6.03 billion to Bangladesh in FY’16 being $5.3 billion more than imports from that country during that fiscal period.
Mankachar border trade
Assam, during a meeting with the Centre last month, said road connectivity in the Bangladesh side for Mankachar Border Trade Point (BTP) “is very poor, and trade is possible only in summers.”
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The Centre responded by stating that the issue may be included in the agenda of the next meeting of the Joint Working Group on Trade and also at the meeting of the subgroup on infrastructure. It wanted Assam to provide more details on issues of road connectivity for Mankachar BTP.
Assam also said dredging of the Brahmaputra River on the Bangladesh side was “essential” to make river vessels route navigable. According to the Centre, talks are on to augment National Waterway-2 (on the Brahmaputra River at the India-Bangladesh border) and the Indo-Bangladesh Protocol Route (related to inland water transit and trade).
Though India wants this proposal to be formulated under South-Asia Sub Regional Economic Cooperation, it has not yet been done due to lack of details on dredging under the Protocol Routes on the Bangladesh side and the funds required. On Bangladesh’s proposal for a Regional Waterway Project-1 (Chittagong-Dhaka-Ashuganj Corridor) for dredging of rivers with World Bank assistance, India has said it will lend support provided Bangladesh promises that in the said proposal, development of India-centric Protocol Route under Indo-Bangladesh Protocol on Inland Water Transit and Trade (PIWTT) would also be considered.
Bangladesh has sought guidance and help from Dredging Corporation of India, the Centre said.
Meanwhile, Meghalaya has informed the Centre that joint inspection for operationalisation of six “new” ‘Border Haats’ was pending due to an inadequate response from Bangladesh. The Centre said, two of these new border haats are operational and the remaining four are under implementation stage.
Border haats
It said Bangladesh has informed that since the Memorandum of Understanding and Mode of Operation on Border Haats have expired in 2013, discussions on the issue should be made only after their renewal. The Centre said India has taken up with Bangladesh the issue of holding the meeting of the Joint Border Haat Management Committees.
The Indian Commerce Ministry, in December 2016 said currently, four border haats are operational, along the India-Bangladesh border (two each in Meghalaya and Tripura). The trade at border haats is allowed in Indian Rupees/Bangladesh Taka and on a barter basis, and trade worth ₹16.86 crore was carried out at the four border haats in the five-year period ending 2015-16.