Why in News?
Recently, India and Bangladesh jointly inaugurated multiple projects in Bangladesh via video conferencing.
About the Inaugurated projects
These projects include:
• Supply of 500 MW additional power supply from India to Bangladesh.
• Construction work of Dhaka-Tongi and Tongi-Joydebpur railway line and Bangladesh part of Akhaura-Agartala railway link.
• Rehabilitation of the Kulaura-Shahbazpur section of Bangladesh Railways.
• Construction of 130-kilometre India-Bangladesh Friendship Pipeline Project for the transportation of oil, connecting Siliguri in India and Parbatipur in Bangladesh.
Significance of the move
• It will boost trade and connectivity between Bangladesh and the landlocked northeast.
• The rebuilding of Kulaura-Shahbazpur section of Bangladesh Railways can be seen as part of a trans Asian railway project that seeks to connect South Asia to Southeast Asia.
• It will strengthen the energy partnership between two countries, which is in pursuance of India's neighbourhood first policy.
Comparison of developmental efforts by India and China in Bangladesh
Area of
Cooperation India’s Development efforts in Bangladesh China’s Development efforts in Bangladesh
Energy • Rooppur project is the first initiative under Indo-Russian deal to undertake atomic energy projects in Bangladesh. India will provide personnel training, consultation support and participate in the construction and erection activity and non-critical materials supply to the site in Bangladesh.
• India currently exports 660 MW of electricity, on a daily basis, to Bangladesh. • China is financing 25 energy projects, including 1320-Megawatt power plant.
• A consortium of Chinese company is building Bangladesh First Clean Coal Power plant.
• Additionally, China has extended its support to build Bangladesh Second Nuclear power plant.
Connectivity • Through Protocol on Inland Water Transit and Trade (PIWTT), India is assisting Bangladesh to capture the potential of waterways for both inter and intra border connectivity of Bangladesh.
• BBIN Initiative aims to facilitate movement of vehicles carrying cargo and passengers in each other’s territory without the need for trans-shipment of goods. • Chinese is assisting in construction of highway and rail network connecting Bangladesh through Myanmar to Yunnan province.
• Port modernisation and its connectivity efforts are taken by China, assisting Bangladesh to tap marine economy.
Trade • Reduction in customs and immigration documents, establishment of 49 land notified land customs stations, integrated check post, help in boosting the external trade of Bangladesh. • Duty Free accesses to Bangladesh products in China, are boosting domestic economy of Bangladesh.
Defence • Through the defence cooperation framework pact, India is providing Military equipment and technology transfer for enhancing cooperation in the field of strategic and operational studies. •
China is a major supplier of defence equipment and also aided Bangladesh in setting up a missile launch pad near Chittagong Port.
Education, Health & Communication • India has extended financial support for socio- economic sectors of Bangladesh such as primary education, healthcare institutions. Additionally, India has extended National Knowledge Network for digital connectivity of education with Bangladesh. •
China is financing Info Sarker-3 project, and "Modernization of Telecommunication Network for Digital Connectivity (MoTN). These projects aim to bring all the ministries, divisions within a public network and increase tele-density.
Livelihood •
India is developing Boarder Haat with
Bangladesh. This includes establishment •
China is providing technical expertise for
skill and training enhancement Project.
of traditional system of marketing the local produce through local markets. Its aim is to transform the country into a high productivity economy.
Space • South Asian Satellite (SAARC Satellite) has been launched to boost regional connectivity in the areas of disaster management, tele-education, tele- medicine inter-government networks etc. • Bangabandhu-1 First communication satellite of Bangladesh was negotiated and financed through help of Chinese government.
Differences in approach of India and China towards Bangladesh:
India’s approach toward Bangladesh
• India is making inroad to Bangladesh through aid- route.
• Indian diplomatic efforts are guided by shared history, common heritage, linguistic and cultural ties, passion for music, literature and the arts.
• Bangladesh is seen as focal point in reducing risk sustainability of North-East region which can be raised due to Chinese influence, terrorist attacks, natural disasters, etc.
• Port connectivity has been seen as starting point for Act East Policy and to capture the economic prospect with Asian Pacific Region.
• Solution through Land Boundary Agreement after 40 years of deadlock is seen as an opening door for other contentious issues such as, River Water Dispute, Illegal Migrants, Human Trafficking, illegal Drug trade etc.
• Bangladesh has been seen as neutralising point against the emerging trend of String of Pearl initiatives for China. •
China’s approach toward Bangladesh
China is adopting more capitalist approach and made significant investment in the Bangladesh.
• Its approach is aimed at consolidating their vision for a maritime corridor extending from the South China Sea to the Indian Ocean via the Bay of Bengal.
• Present infrastructure building for energy along the Myanmar route can be seen as expansion of energy corridor for China.
• Ports in Bangladesh are an important motivation for China because it offers a lucrative alternative route to reduce its dependence on the Straits of Malacca for the supply of its energy.
• China and Bangladesh share several points of strategic convergence, however, Brahmaputra river issue is still a bone of contention.
• Moreover, Bangladesh is seen as strategic focal point in obtaining Chinese influence in North- Eastern region of India.
India -Pakistan trade relations- A recipe for peace
Current Status-Slow progress in trade with declining trend-
• Though trade increased by 3.5 times between 2000-2005 but it was slow. Recently it fell in 2017 to $2.40 billion from
$2.70 billion in 2013-2014.
• There has been minimal increase in Indian exports after Pakistan’s change in import policy in 2012. In 2016-2017 new exports were only 12% of India’s total export to Pakistan.
• In absence of full trade relations there is rampant illegal trade routed through West Asia and Nepal.
• Indirect trade via UAE is 10 times the normal bilateral trade.
Required Changes
• Development of Regional Value chains in textile, pharma and sports goods. Develop links between textile hubs i.e. Lahore and Surat etc.
• Normalization of trading relations i.e. Non-discriminatory in nature thereby complying with the WTO rules.
• Narrowing the sensitive list on both sides and reducing non- tariff barriers.
• Business level dialogue-It includes building social capital in trading community; develop business to business linkages through national chambers and implementing SAARC visa regime
Recently, India and Bangladesh jointly inaugurated multiple projects in Bangladesh via video conferencing.
About the Inaugurated projects
These projects include:
• Supply of 500 MW additional power supply from India to Bangladesh.
• Construction work of Dhaka-Tongi and Tongi-Joydebpur railway line and Bangladesh part of Akhaura-Agartala railway link.
• Rehabilitation of the Kulaura-Shahbazpur section of Bangladesh Railways.
• Construction of 130-kilometre India-Bangladesh Friendship Pipeline Project for the transportation of oil, connecting Siliguri in India and Parbatipur in Bangladesh.
Significance of the move
• It will boost trade and connectivity between Bangladesh and the landlocked northeast.
• The rebuilding of Kulaura-Shahbazpur section of Bangladesh Railways can be seen as part of a trans Asian railway project that seeks to connect South Asia to Southeast Asia.
• It will strengthen the energy partnership between two countries, which is in pursuance of India's neighbourhood first policy.
Comparison of developmental efforts by India and China in Bangladesh
Area of
Cooperation India’s Development efforts in Bangladesh China’s Development efforts in Bangladesh
Energy • Rooppur project is the first initiative under Indo-Russian deal to undertake atomic energy projects in Bangladesh. India will provide personnel training, consultation support and participate in the construction and erection activity and non-critical materials supply to the site in Bangladesh.
• India currently exports 660 MW of electricity, on a daily basis, to Bangladesh. • China is financing 25 energy projects, including 1320-Megawatt power plant.
• A consortium of Chinese company is building Bangladesh First Clean Coal Power plant.
• Additionally, China has extended its support to build Bangladesh Second Nuclear power plant.
Connectivity • Through Protocol on Inland Water Transit and Trade (PIWTT), India is assisting Bangladesh to capture the potential of waterways for both inter and intra border connectivity of Bangladesh.
• BBIN Initiative aims to facilitate movement of vehicles carrying cargo and passengers in each other’s territory without the need for trans-shipment of goods. • Chinese is assisting in construction of highway and rail network connecting Bangladesh through Myanmar to Yunnan province.
• Port modernisation and its connectivity efforts are taken by China, assisting Bangladesh to tap marine economy.
Trade • Reduction in customs and immigration documents, establishment of 49 land notified land customs stations, integrated check post, help in boosting the external trade of Bangladesh. • Duty Free accesses to Bangladesh products in China, are boosting domestic economy of Bangladesh.
Defence • Through the defence cooperation framework pact, India is providing Military equipment and technology transfer for enhancing cooperation in the field of strategic and operational studies. •
China is a major supplier of defence equipment and also aided Bangladesh in setting up a missile launch pad near Chittagong Port.
Education, Health & Communication • India has extended financial support for socio- economic sectors of Bangladesh such as primary education, healthcare institutions. Additionally, India has extended National Knowledge Network for digital connectivity of education with Bangladesh. •
China is financing Info Sarker-3 project, and "Modernization of Telecommunication Network for Digital Connectivity (MoTN). These projects aim to bring all the ministries, divisions within a public network and increase tele-density.
Livelihood •
India is developing Boarder Haat with
Bangladesh. This includes establishment •
China is providing technical expertise for
skill and training enhancement Project.
of traditional system of marketing the local produce through local markets. Its aim is to transform the country into a high productivity economy.
Space • South Asian Satellite (SAARC Satellite) has been launched to boost regional connectivity in the areas of disaster management, tele-education, tele- medicine inter-government networks etc. • Bangabandhu-1 First communication satellite of Bangladesh was negotiated and financed through help of Chinese government.
Differences in approach of India and China towards Bangladesh:
India’s approach toward Bangladesh
• India is making inroad to Bangladesh through aid- route.
• Indian diplomatic efforts are guided by shared history, common heritage, linguistic and cultural ties, passion for music, literature and the arts.
• Bangladesh is seen as focal point in reducing risk sustainability of North-East region which can be raised due to Chinese influence, terrorist attacks, natural disasters, etc.
• Port connectivity has been seen as starting point for Act East Policy and to capture the economic prospect with Asian Pacific Region.
• Solution through Land Boundary Agreement after 40 years of deadlock is seen as an opening door for other contentious issues such as, River Water Dispute, Illegal Migrants, Human Trafficking, illegal Drug trade etc.
• Bangladesh has been seen as neutralising point against the emerging trend of String of Pearl initiatives for China. •
China’s approach toward Bangladesh
China is adopting more capitalist approach and made significant investment in the Bangladesh.
• Its approach is aimed at consolidating their vision for a maritime corridor extending from the South China Sea to the Indian Ocean via the Bay of Bengal.
• Present infrastructure building for energy along the Myanmar route can be seen as expansion of energy corridor for China.
• Ports in Bangladesh are an important motivation for China because it offers a lucrative alternative route to reduce its dependence on the Straits of Malacca for the supply of its energy.
• China and Bangladesh share several points of strategic convergence, however, Brahmaputra river issue is still a bone of contention.
• Moreover, Bangladesh is seen as strategic focal point in obtaining Chinese influence in North- Eastern region of India.
India -Pakistan trade relations- A recipe for peace
Current Status-Slow progress in trade with declining trend-
• Though trade increased by 3.5 times between 2000-2005 but it was slow. Recently it fell in 2017 to $2.40 billion from
$2.70 billion in 2013-2014.
• There has been minimal increase in Indian exports after Pakistan’s change in import policy in 2012. In 2016-2017 new exports were only 12% of India’s total export to Pakistan.
• In absence of full trade relations there is rampant illegal trade routed through West Asia and Nepal.
• Indirect trade via UAE is 10 times the normal bilateral trade.
Required Changes
• Development of Regional Value chains in textile, pharma and sports goods. Develop links between textile hubs i.e. Lahore and Surat etc.
• Normalization of trading relations i.e. Non-discriminatory in nature thereby complying with the WTO rules.
• Narrowing the sensitive list on both sides and reducing non- tariff barriers.
• Business level dialogue-It includes building social capital in trading community; develop business to business linkages through national chambers and implementing SAARC visa regime
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