Bangladesh and India share between them the world's 5th largest land border, yet the bilateral trade between these two fast growing South Asian economies is a small part of their respective international trade.
Bangladesh's bilateral trade with India is 10% of the country's total trade volume, while India's trade with Bangladesh is only 1% of the country's total trade volume. With better integrated regional connectivity, both the countries could hugely benefit from trade and investment within the region.
Sharing these thoughts at a World Bank-organized Facebook Live discussion on Wednesday, some of the bank's officials emphasised removing all barriers to an integrated, well-connected South Asia.
Courtesy Cecile Fruman, director, regional integration (South Asia) of the World Bank, moderated the discussion titled "The Road Ahead: Unlocking Connectivity between Bangladesh, Bhutan India, and Nepal."
World Bank's country director for Bangladesh and Bhutan, Abdoulaye Seck, and that of India, Auguste Tano Kouame, took part in the discussion also joined by over 80 participants, including journalists from South Asian countries.
The discussants emphasised integrated border trade management at different land ports, including at Benapole-Petrapole where it takes longer to ship cross-border goods.
They said Bangladeshi goods-laden trucks crossing over to India and vice versa should not be seen as threats but as opportunities, as these can save lots of time and unnecessary loading-unloading.
They laid special emphasis on removing all roadblocks in the implementation of Bangladesh, Bhutan, India, and Nepal (BBIN) connectivity, Motor Vehicle Agreement (MVA) and the signing of bilateral Free Trade Agreement (FTA).
Auguste Tano Kouame said if India signs an FTA with Bangladesh, its trade with its neighbour would be doubled.
He said goods from India's north-eastern region become 15% pricier when they are transported to the rest of India through the Siliguri corridor crossing around 1,600km. Better regional integration could potentially reduce the travel path to only 400km through Bangladesh.
Asked about public perception that better connectivity is serving the Indian interests only, Cecile Fruman tried to dispel such a notion by saying South Asian regional integration is for the benefit of all countries of the region.
The discussants also highlighted some of the World Bank's recent investment initiatives in South Asia that facilitate, among others, better rail and waterway interconnection between Bangladesh and India.
