New growth trajectory of Northeast
Inauguration of the Maitri Setu, a double-lane bridge connecting India and Bangladesh restores a strategic access of North-eastern states to the sea.
| 11 March 2021 5:00 AM GMT
Inauguration of the Maitri Setu, a double-lane bridge connecting India and Bangladesh restores a strategic access of North-eastern states to the sea. The Sabroom town on Indian side of the bridge over river Feni in Tripura is about 72 km by road from Chittagong port in Bangladesh. The bridge, therefore, reduces the distance of the Northeast region to the sea to about 72 km to 600 km for all the states. Prior to inauguration of the bridge the nearest access of the region to the sea through the Haldia port in West Bengal ranged from 600 km to 1200 km for all the states. This significant reduction in distance to the sea has unlocked a huge potential of trade and commerce for the landlocked northeast region as it is going significantly to reduce the transportation cost. A new report published by the World Bank states that seamless transport connectivity between has the potential to increase the national income by about 17 per cent Bangladesh and eight per cent in India. The World Bank estimates say that the current bilateral trade between the two neighbouring countries account for 10 per cent of total trade in Bangladesh and only one per cent of total trade in India. Whereas, in East Asian and Sub-Saharan African economies, intraregional trade accounts for 50 per cent and 22 per cent of total trade, respectively. In fact, it is about 15–20 per cent less expensive for a company in India to trade with a company in Brazil or Germany than with a company in Bangladesh, the report was quoted in a press release issued by the World Bank. Seamless connectivity will require easing of restriction on movement of trucks of both the countries at the international border and facilitating movement on the identified corridors. India and Bangladesh share 4096-km-long international border which is the fifth longest land border in the world. It is also the longest international border that India shares with its neighbours. Deepening bilateral relations between the two countries have led to gradual softening of the intentional border. Challenges standing in the way of easing restrictions are rooted in complexities of history of cross border migrations from erstwhile East Pakistan and porous India-Bangladesh border impacting India's internal politics, more particularly in the Northeast region. Prime Minister Narendra Modi speech after inauguration of the bridge highlights that now people Northeast region will not have to depend only on the road for any kind of supply to the region. It is also heartening to know from his speech efforts are underway to connect Chittagong port of Bangladesh with North-eastern states through an alternative route via the river. He said the ICP in Sabroom will work like a full-fledged logistic hub with warehouses and container transshipment facilities. The region imports huge quantities of essential and other commodities from production hubs in other states in India through long land routes which ranges to about 1600 km to Agartala from Kolkata port. Inauguration of the bridge over river Feni is a step closer to the two countries facilitating seamless connectivity. The Motor Vehicle Agreement of the sub-regional architecture of integrating BBIN (Bangladesh, Bhutan, India, Nepal) sub-region in South Asia has already been taken forward to discussing the protocols for regulation of passenger, personal and cargo vehicular traffic to be signed for implementation in Bangladesh, India, and Nepal. For strengthening the MVA, the World Bank report recommends "harmonizing driver's licensing and visa regimes, establishing an efficient regional transit regime, rationalizing and digitising trade and transport documents and liberalizing the selection of trade routes." Expediting the negotiations over the protocols will ensure harnessing the optimal potential of trade and commerce across the Maitri Setu and it is imperative on India to take the initiative in this regard. Sustained dialogue and following up the bilateral agreements with actions on ground are critical to timely execution of the projects mutually beneficial to both the countries. For the Northeast region, the bridge over Feni unlocks huge potential of creating cross-border value chains for agricultural, horticultural, textile and handicraft sectors as the region is known to be an organic hub and for nutritious fruits, vegetables, exotic flowers, and spices. The NITI Aayog's Export Preparedness Index 2020 reveals that the North-eastern states are least prepared to expand their export footprint. The opportunities brought by inauguration of the Maiti Setu and MVA between BBIN will be lost if the region fails to take corrective steps and prepare well ahead of the seamless connectivity regime between India and its neighbours. Restored access to the sea routes has brought an end to geographical isolation of the landlocked region. The challenge for the states and the people in the northeast region is to utilize the opportunities and create the right ecosystem for trade and commerce and move the region to a new growth trajectory.