Seamless transport connectivity with Bangladesh has the potential to extend India’s value by the maximum amount as 8% and Bangladesh by the maximum amount as 17%, consistent with a recent International Bank for Reconstruction and Development survey. With the Eastern sub-region set to become an “economic growth pole” for South Asia, it’s necessary for countries to take a position in connectivity to realize this potential, consistent with the top of India’s financial organization.
The Bangladesh-Bhutan-India-Nepal automobile Agreement (MVA) could turn regional transport in East South Asia and convey major economic benefits to Bangladesh and India. Removing all border friction from the movement of trucks between Bangladesh and India will bring enormous benefits to both countries. Bilateral trade accounts for less than about 10% of Bangladesh’s trade and about 1% of India’s trade. As within the East Asian and Sub-Saharan African economies, intra-regional trade accounts for 50 per cent and 22 per cent of total trade, respectively.
Previous research by the World Bank shows that India’s exports to Bangladesh will increase by 126 per cent and Bangladesh’s exports by 182 per cent if countries sign a trade agreement. “This study found that improving transport connectivity between the 2 countries could further increase exports, leading to a 297 per cent increase in Bangladesh’s exports to India and a 172 per cent increase in India’s exports to Bangladesh,” Junaid Ahmad, world bank Country Director in India .
“This is especially true because the Covid region continues its economic recovery. Connectivity is ultimately a promise of long-term sustainable and inclusive development,” he said.
