Sunday, November 4, 2018

SEP 18 IR 4 India and Bangladesh PAKISTAN

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



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