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New trade-transit links

Pioneer

Connecting the North-East via Bangladesh

Improving trade and transit links with Bangladesh has been one of the most important elements of Prime Minister Narendra Modi's North East development strategy, and now steadily the Government's efforts in this direction are bearing fruit. Most recently, Indian vessels from Kolkata to Agartala have begun to cut through Bangladesh, instead of taking the circuitous route through north Bengal and Meghalaya. On June 16, for the first time in decades, a cargo vessel from Kolkata, carrying a consignment for Tripura, docked at Bangladesh's Ashuganj port.

From the port, which is about a 100kms from Dhaka, the cargo was loaded on to Bangladeshi trucks, which are now transporting them to Tripura via the Agartala-Akhaura border, the second largest trading point between India and Bangladesh after Benapole-Petrapole post. The new route brings down travel distance by more than a 1000kms and reduces transit time from 30 days to 10 days. This is a win-win situation for all stakeholders — trade to and from the North-East will receive a boost, spurring development in the region; West Bengal will also see more business while Bangladesh will benefit too for facilitating access. Made possible after a revised protocol for land and inland river transport was signed during Prime Minister Narendra Modi's visit to Bangladesh last year, this new linkage is only the latest of a series of such initiatives.

In March, the first Bangladeshi vessel sailed from Krishnapatnam under a new pact that treats ships from the other country as domestic traffic and allows them easy passage, particularly for trade to third countries, such as Myanmar (for India) and Nepal (for Bangladesh). This helps streamline coastal shipping operations between the two countries. In February, new immigration facilities inaugurated in Fulbari (India)-Banglabandha (Bangladesh) have improved trade and transit connectivity on the route which was previously open only to goods traffic. North Bengal's tourism industry is expected to get a big boost with Siliguri becoming an even bigger regional hub. Notably, the new corridor at Fulbari will also connect with the upcoming Asian Highway 2. Another project that’s in the works is the transportation of liquefied Petroleum Gas to the North-East via Bangladesh. If Dhaka consents, this will make cooking gas and fuel much cheaper in the North-East.

West Bengal, the seven sister States of the North-East and Bangladesh have historically been part of one economic unit. But partition disrupted this set-up, and the region has suffered much since then. Decades later, the situation is now changing with reform-minded, progressive leaders in Delhi and Dhaka seeking to mitigate the burden of history. There is, of course, a long way to go, and there will be niggling troubles ahead (for example, some in Bangladesh are already unhappy with the rates India is paying for transit rights) — but there is nothing that cannot be sorted out.