Bangladesh’s exports to India could rise by 300% if connectivity improves: Indian envoy

Indian High Commissioner in Dhaka Pranay Verma said on Tuesday that Bangladesh's exports to India could increase by nearly 300% if connectivity improves along with trade and infrastructure.

"Studies indicate that the seamless connectivity between India and Bangladesh has the potential to increase national income by 17% in Bangladesh and 8% in India," he said at a seminar on "Multimodal connectivity between India and Bangladesh" organised by Unnayan Shamannay, a private research organisation. 

In the last 10 years, Bangladesh's exports to India have increased by around four times, reaching nearly $2 billion in the fiscal 2021–22.

According to data from the Bangladesh Bank, in the fiscal 2017–18, goods worth $8.62 billion were imported from India, and the volume increased to over $14 billion in the fiscal 2021–22.

Professor Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), an independent think tank, said, "It took us 47 years to have our first $1 billion export, and it took us another only four years to make it to $2 billion."

Regarding multimodal connectivity, he said, "I see enormous possibilities, but I don't see the urgency."

Pranay Verma said, "To optimise the potential for better connectivity, we hope to gain greater access to and from Bangladesh's ports, inland waterways, and road links. We also offer Bangladesh options to use our ports, railways, and airports to export goods to India and the rest of the world.

"Just as we look to improve the connectivity of our north-eastern states through Bangladesh, we are also encouraging transit facilities for Bangladesh to export its product to third countries through specified land customs stations, airports, and seaports in India."

He said a recent initiative in this regard is the addition of Kolkata and Delhi airports as transhipment hubs for export cargo from Bangladesh to other countries. In this regard, Bangladesh's businesses have more options for exporting to third countries.

The Indian envoy mentioned that they have concluded a bilateral agreement on the use of Chattogram and Mongla ports, whereby goods can be transported to India's north-eastern region from the rest of India and vice versa through these two ports in Bangladesh.

"It will reduce the cost of transportation to our north eastern estates," he added.

He said the geographical proximity of India and Bangladesh is an advantage that should be leveraged for mutual benefits.

Better connectivity is needed for ease of doing business and ease of living, both of which are key priorities for India, he added.

Mentioning that agricultural connectivity is a big one, Ahsan Khan Chowdhury, chief executive officer of Pran-RFL Group, said, "The integration of agriculture between north-eastern states and us – I think that is something that will bring change in the lives of many people."

"Our trucks are not able to go easily to India; our trucks are getting unloaded at the border, and the borders are not functioning 24 hours a day. So we demand that we look at Europe, and whatever connectivity we have, we should look at Asean," he added.

Professor Syed Ferhat Anwar, of the Institute of Business Administration at Dhaka University, said, "Do we actually talk in terms of enhancing trust? Have we worked on that?

"That is part of connectivity as well. The connectivity of mind and the heart – if that does not work out in the long run, we will not go too far."

He focused on considering the cost of maintaining connectivity.

In his keynote paper presented at the seminar, Unnayan Shamannay Chairperson Atiur Rahman said the discourse must remain keen on multimodal connectivity rather than relying solely on any single mode of transportation.