India and Bangladesh hold Commerce Secretary Level Meeting

Contact Counsellor

Last Updated05/03/2022

A Commerce Secretary level meeting between India and Bangladesh was held in New Delhi recently
Issues of mutual interest were discussed between both sides during meeting
Both sides appreciated significant growth in the bilateral trade between the two countries in recent years

Trade facilitation: trade will be facilitated between India-Bangladesh through railways
Integrated Check Post (ICP): 24x7 operationalization of Petrapole-Benapole Integrated Check Post (ICP) to be implemented
Regional connectivity: it will be strengthened between the two countries through multi-modal transport
CEPA: Joint Study on Comprehensive Economic Partnership Agreement (CEPA) to be finalised at the earliest

Development of railway infrastructure, port infrastructure, Border Haats, Harmonisation of Standards and Mutual Recognition Agreement

Bangladesh is the 6th largest trade partner of India
Exports of Bangladesh: apparels and clothing, textile fabrics, paper yarn/woven fabrics of paper yarn, animal/vegetable fats and oils, fish etc.
Exports of India: cotton, electrical machinery, vehicles, iron and steel, plastic and related articles etc.
Meetings of various institutional mechanisms to promote bilateral trade: Secretary level meetings of Commerce and shipping ministries, LCS/ICP infrastructure and establishment of Indian Economic Zone etc.
India-Bangladesh Textile Industry Forum: to enhance linkages and collaboration in the textile sector.

Bangladesh is the biggest development partner of India .
Line of Credits: India has extended 3 Lines of credit in the last 8 years of US$ 8 billion for development of infrastructure (roads, railways, shipping and ports etc).
Grant assistance to Bangladesh for infrastructure projects :
construction of Akhaura-Agartala rail link,
dredging of inland waterways in Bangladesh and
construction of India-Bangladesh Friendship Pipeline.
Small Development Projects (SDPs): India funded 55 SDPs like academic buildings, cultural centres,orphanages etc.
High Impact Community Development Projects (HICDPs): India funded 68 HICDPs including construction of student hostels, academic buildings, skill development and training institutes, cultural centres, and orphanages etc and another 16 HICDPs are being implemented.

Armed forces from both sides regularly conduct joint drills like MILAN.
India extended a $500 million line of credit for defence imports from India.
Sampriti Exercise: bilateral defence coop. exercise between armies of both countries which was started in 2009.

Rail links: Both are restoring the pre- 1965 rail links like in Haldibari in India and Chilahati in Bangladesh and work on Akhaura-Agartala rail link, Khulna-Mongla is underway.
Passenger train: Frequency of 2 passenger trains, i.e., Maitree Express and Bandhan Express increased.
Side-door container and parcel trains: To maintain uninterrupted supply chains during the COVID-19 pandemic.
Gauge diesel locomotives: 10 broad gauge diesel locomotives handed over by India as part of grant assistance to Bangladesh Railways
Bus service: Dhaka-Siliguri-Gangtok-Dhaka and Dhaka-Siliguri-Darjeeling-Dhaka.
Feni Bridge (Maitree Setu): 1.9 km bridge built over Feni river joining Sabroom, India & Ramgarh, Bangladesh.
Aim: To facilitate trade and people to people movement.
Its name symbolises growing bilateral relations and friendly ties b/w the 2 countries.
Bangladesh, Bhutan, Nepal and India (BBIN), Motor Vehicles Agreement (MVA), 2015: For regulation of passenger, personnel and cargo vehicular traffic among four South Asian neighbours.
Inland routes and ports: Bangladesh granted permission to use its inland route and ports of Chittagong and Mongla for trans-shipment of goods to northeast Indian states.

Cross-border Migration: Illegal migration from Bangladesh leads to demographic shifts in bordering states in the North East which gives rise to socio-ethnic tensions among locals and migrants.
National Registration of Citizens (NRC) issue: Bangladesh has concerns about influx of 1000s of people across the border following deportation.
Water Disputes: 54 common rivers including Ganges and Brahmaputra.
So there are Issues over sharing of river waters, interlinking of rivers and building of dams.
Rising Radicalization: Presence of groups like Harkat-alJihad-al-Islami (HUJI), Jamaat-e-Islami, and HUJI-B fuel anti-India sentiments in Bangladesh.
Cross border crime: Tough terrain, porous border leads to smuggling of arms, narcotics, fake Indian currencies, cattle and trafficking of women and children.
China factor: China sees Bangladesh as a strategic focal point to make inroads into South Asia as an alternative to India.
Heightened level of China-Bangladesh ties leads to increased India’s security vulnerabilities in the critical northeastern region (around “Siliguri Corridor”).
Delay in project execution: Till 2017, India extended 3 lines of credit of ~ $7.4 billion.
However, less than 10% of cumulative commitments were dispersed so far.

Deepening relationship with Bangladesh is a necessity for shifting geo-economics.
There is a need to address the issues of mutual interest and effective border management for ensuring a tranquil, stable and crime free border.
Both countries need to work on 3Cs — cooperation, collaboration, and consolidation for fostering bilateral relations