AGARTALA, June 12 (TIWN):The real game changer in the recent talks between the two neighbours was the agreement on coastal shipping. Coastal Shipping Agreement would basically facilitate the direct regular movement of ships between India and Bangladesh, which would bring the shipping time down from 30 to 40 days on an average to seven to 10 days. The two sides are hopeful that improved connectivity will enhance mutual trade which in turn will bring a new dimension of growth to the entire region .According to MoU that has also been signed by both PMs which relates to access to Chittagong and Mongla ports for the movement of goods to and from India. “With the proposed bridge over River Feni on the India-Bangladesh border, there will be road connectivity from Chittagong to Agartala which will allow the movement of Indian goods to Chittagong and Mongla ports which could then move on to Tripura and other regions of the North-east by road,” Foreign Secretary Jaishankar elaborated in Dhaka.It allows India on its part to improve access to its north-east region and allows Bangladesh access through India to Nepal and Bhutan.

 Nowadays the bulk of trade takes place across land, and to the extent that in sea trade, this is through distant ports like Singapore. The goods are then reloaded into feeder vessels which then bring them into Chittagong in Bangladesh.

The port facility at Chittagong has long been included in the list of China-backed ports (Gwadar in Pakistan, Hambantota in Sri Lanka, Maraoin the Maldives, and Kyaukpyu in Myanmar) in Beijing’s “string of pearls” which refers to the encirclement of India by China-friendly ports. For Indian civilian vessels to have access to these ports is an important development, because it reflects the growing trust between India and Bangladesh, and assuages Indian fears about the depth of China’s influence in Dhaka.

Once the tangible benefits of coastal shipping agreement and related ones start trickling in, two other important and contiguous neighbours of India, namely Bhutan and Nepal, will also start reaping the fruits of development and connectivity.

India and Bangladesh have also agreed that Indian Special Economic Zones will be established in Bangladesh, a point specifically mentioned by Prime Minister Sheikh Hasina in her remarks at the conclusion of her talks with Modi. This would inevitably help Bangladesh in substantially restoring the bilateral trade balance which is currently loaded heavily against them. Of the $6.5 billion bilateral trade, Bangladeshi exports to India account for a mere half a billion dollars.

Moreover, the above measures would spark off greater export-led growth in diverse sectors like textiles, leather goods, pharmaceuticals, auto components, ship building and marine food processing, to name a few. It is time for Bhutan and Nepal to get on to this new bandwagon which is low on politics and high on growth-oriented development.

This transportation via Bangladesh is much easier as surface connectivity is a key factor for the north-eastern region, which is surrounded by Bangladesh, Myanmar, Bhutan and China. There is only a narrow land corridor to the north-eastern states from India through Assam and West Bengal but this route passes through hilly terrain with steep gradients and multiple hairpin bends.

For instance, Agartala via Guwahati is 1,650 km from Kolkata and 2,637 km from New Delhi, while the distance between Agartala and Kolkata via Bangladesh is just about 350 km. The proposed bridge over river Feni would not only make it easier to ferry goods and heavy machinery to the region, it would also greatly boost the trade between Bangladesh and north-eastern states.

Tripura, Assam, Meghalaya and Mizoram have undertaken to develop various tourism-related amenities and infrastructure along their bordering areas. The four states share a 1,880-km border with Bangladesh. On an average, the distance between important cities of Bangladesh and north-eastern India is 5 km to 50 km. Meanwhile, the North-east Frontier Railway has started preliminary work to extend its network up to the Bangladeshi border town and railway station of Akhaurah, just six km from the Agartala railway station.

There is also a strong possibility that India may take part in developing a new Paira port in Bangladesh. The new port situated between the two will help transport goods from India to north-eastern states like Tripura. A Shipping Ministry team has visited the Paira port site recently for an on the spot inspection. China is keen on implementing this project besides United Kingdom and Netherlands.

India had recently signed an agreement with the Iranian government for setting up two berths at the strategically important Chabahar port at a cost of 85 million dollars. The port will give India access to Afghanistan by passing Pakistan and is close to another strategically-important Gwadar port in Pakistan where the Chinese have considerable presence.

The two countries signed another protocol on inland water transit and trade that will allow the use of rivers of the two countries to promote trade among India’s north-eastern states and adjoining parts of Bangladesh.

India is hoping that the pact which has a five-year life will attract Indian companies to build ports and other infrastructure that will boost intra-regional trade. Bangladesh too stands to gain from this, with access to Nepal and Bhutan through Indian territory. The two countries also signed a pact to promote maritime cooperation in the Bay of Bengal and the Indian Ocean.

All in all, why this enhanced exchange between India and Bangladesh will work is because it is mutually beneficial. India has rightly not been sticky about giving away more land enclaves to Bangladesh than what it is getting because the other gains that India will be making especially in coastal links would be of much benefit to us