New Delhi and Dhaka are currently exploring the possibility of establishing 16 new border haats to bolster trade between the two nations. This initiative aims to amplify economic interactions and market access between India and Bangladesh. The announcement was made by Smita Pant, a senior diplomat in the Indian Ministry of External Affairs, during a conference focused on enhancing connectivity between India’s Northeast and Bangladesh. These border haats, designed as informal markets, facilitate local communities in trading agricultural and manufactured goods across the border.
Presently, both countries have eight operational border haats situated in northeastern states such as Tripura and Meghalaya. The new border haats, currently under discussion, are anticipated to be established in Mizoram and West Bengal. This move is expected to enhance market accessibility for border communities and create new economic opportunities, while concurrently curbing informal trade across the border.
These initiatives are taking shape within the context of broader efforts to bolster trade and connectivity between India and Bangladesh. Infrastructure development and connectivity enhancement are being prioritized, often with support from Japan. The forthcoming Matabari Port in Bangladesh, slated for completion by 2027, is poised to streamline the movement of goods between India and Bangladesh, with an eye toward broader Asian markets.
The collaborative momentum extends to the “Bay of Bengal Northeast Industrial Value Chain Concept,” a tripartite initiative involving India, Bangladesh, and Japan. This concept envisions fostering manufacturing growth in India’s Northeast and Bangladesh.
Moreover, New Delhi and Dhaka are actively negotiating a comprehensive economic agreement. A joint feasibility study endorsed the idea of a Comprehensive Economic Partnership Agreement (CEPA), and both countries have committed to commencing negotiations within the calendar year 2022. The goal is to facilitate trade and economic integration, further propelled by Bangladesh’s impending graduation from its Least Developed Country (LDC) status.
Connectivity emerged as a pivotal theme during discussions between Indian Prime Minister Narendra Modi and Bangladeshi Prime Minister Sheikh Hasina in September 2022. Both leaders underscored the urgency of infrastructure upgradation, removal of port restrictions, and non-tariff barriers at identified Land Customs Stations, emphasizing their shared commitment to facilitating seamless trade.
Amidst these endeavors, India has made a notable gesture by extending free transit to Bangladesh through its territory, enabling the latter to export goods to third countries via designated Land Customs Stations, seaports, and airports. Bangladesh reciprocated by seeking transit rail connectivity at the Chilahati-Haldibari crossing.
In essence, these initiatives reflect the concerted efforts of India and Bangladesh to fortify economic cooperation, enhance trade infrastructure, and streamline cross-border movement, ultimately fostering a climate of shared prosperity and partnership.
