Venu Naturopathy

 

Chill in India-Bangladesh ties taking heavy toll on cross-border trade and infrastructure

Bangladeshi authorities have noted that Matarbari Port  will also support feeder vessel services from India’s Kolkata and Haldia ports. This transshipment framework could facilitate efficient trade not only for India but also for landlocked neighbors like Nepal and Bhutan. However, much of this potential remains unrealized, and may continue to do so, amid Bangladesh’s current domestic challenges and diplomatic tensions with India

Prof Sreeradha Datta Apr 17, 2025
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Agartala Integrated Check Post (ICP) between India and Bangladesh

On a recent trip to Agartala for a conference co-hosted by the Assam Rifles and Asian Confluence, we had the opportunity to revisit and hold discussions at the Agartala Integrated Check Post (ICP). While the customs land stations may lack the facilities of the Agartala ICP, this point was, less than a year ago, a thriving hub of border activity. The current political situation between India and Bangladesh has drastically reduced trade momentum at every crossing point, including the Agartala-Akhaura border. From nearly 3,000 people using the check post daily, the number has dropped to fewer than 200. Trade through the Agartala land port amounted to ₹318 crore in 2023–24; today, there is virtually no movement at this point. The modern, refurbished ICP symbolized the generational shift in India-Bangladesh relations. Both sides had invested significantly in improving bilateral ties, trade, and cross-border infrastructure.

Not only does the Agartala ICP now appear deserted, but the newly constructed ICP a few kilometers away at Sabroom—ready for operation—also lies silent. Built at a cost of ₹250 crore and situated near the Maitri Setu on the transboundary Feni River, which flows between southern Tripura and Khagrachari in southeastern Bangladesh, this facility once held immense promise for growth and prosperity. 

Bangladesh has also completed construction of the Ramgarh land customs station, which, once operational, will facilitate efficient movement from Chittagong to Mymensingh and Sylhet via a road link through India. Together, Sabroom and the Ramgarh land port were expected to be game changers for the region, given their immense potential for the movement of cargo and people. Not only could residents of Tripura - and from India's northeastern states - gain access to the Chittagong seaport, but they could also use the Chittagong airport. The Ramgarh land port was poised to become a new commercial corridor between the two neighbors.

Unrealised potential 

Bangladesh’s Cox’s Bazar, home to one of the world’s longest beaches, has not seen significant tourist traffic from India—something that could change with improved two-way access between Chittagong, the Chittagong Hill Tracts, and India’s Northeast. In fact, it was envisioned that India’s trade with Myanmar would also benefit through these cross-border points.

More significantly, cross-border facilities will reach their full potential only once connected with the upcoming Matarbari Port. Bangladesh is constructing this deep seaport in Cox’s Bazar district with support from the Japan International Cooperation Agency (JICA). Located south of Chittagong Port, Matarbari Port holds commercial significance not just for Bangladesh and Japan, but also for India.

For years, Bangladesh has depended on regional deep-sea ports such as Colombo, Singapore, and Port Klang in Malaysia. Once operational, the Matarbari Port will reduce transshipment costs and improve shipping efficiency, giving Bangladesh greater control over its maritime operations.

With growing global focus on the Indian Ocean and Bay of Bengal, Bangladesh’s strategic location enhances its appeal as a trading and strategic partner. As part of its expanding strategic vision, Dhaka increasingly sees itself as a regional player beyond its traditional South Asian identity, with ambitions in the broader Indo-Pacific. Bangladesh has long championed regionalism, and the Matarbari Port was seen to play a key role in establishing the country as a regional transshipment hub.

Once functional, the port will significantly boost Bangladesh's maritime capacity by enabling direct docking of large vessels—a feature currently unavailable at Chattogram Port, the country's primary seaport. Estimates suggest that shipping one Twenty-foot Equivalent Unit (TEU) container currently costs $3,000 and takes 40–42 days for delivery to Europe. Matarbari will accommodate large container ships of over 8,200 TEUs, promising faster and cheaper deliveries. While the Ramgarh land port will link to India’s ICPs, Bangladesh is also constructing a 27.2-km road to connect the deep seaport to Cox’s Bazar.

Bangladeshi authorities have noted that Matarbari Port  will also support feeder vessel services from India’s Kolkata and Haldia ports. This transshipment framework could facilitate efficient trade not only for India but also for landlocked neighbors like Nepal and Bhutan. However, much of this potential remains unrealized, and may continue to do so, amid Bangladesh’s current domestic challenges and diplomatic tensions with India. .

Missed opportunities

Coupled with global trade uncertainties—exacerbated by protectionist tariffs from countries like the US—the South Asian subregion’s prospects are further stymied by the chilly state of India-Bangladesh relations. A recent meeting between the two leaders on the sidelines of the BIMSTEC summit failed to thaw bilateral tensions. As a result, most cross-border infrastructure remains underutilized. Without a revival of diplomatic warmth, even the completion of the Matarbari Port will fail to unlock its full potential.

It appears that a genuine improvement in ties might only be possible following inclusive elections in Bangladesh. Until then, it is the common people on both sides of the border who bear the brunt of missed opportunities.

(The author teaches international politics at O P Jindal Global University, Haryana, India. Her main research focus is on India's extended neighbourhood and issues of regionalism and cross-border issues. Views expressed are personal. She can be contacted at sreeradha@yahoo.com)

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Masud Khan
Sat, 04/19/2025 - 00:01
And that's exactly why Muhammad Yunus should lead Bangladesh for at least another 4 years, not because for the interest of Yunus but for the interest of Bangladesh!