Bangladesh needs Indian economic anchor to sail in turbulent waters
By Manish Anand
New Delhi, September 6: Bangladesh Prime Minister Sheikh Hasina has done wonders for her country in the economic space, while also keeping the radical Islamists largely at bay. But the Russian invasion of Ukraine has plunged the global economy in turmoil that has already taken a heavy toll on a number of heads of the governments across the world.
Prime Minister Narendra Modi’s announcement in the presence of Hasina that India and Bangladesh will work on the comprehensive economic partnership, thus, is most timely.
India is the largest market for Bangladesh. India, while led by Modi, is betting big on BIMSTEC, and Bangladesh is at the strategically crucial space in the grouping.
Also, India’s neighborhood first (minus Pakistan) and ‘Act East’ policy should work in favour of Bangladesh.
The BIMSTEC, which is promoted by India by conveniently forgetting the dead SARC, is home to 1.73 billion people. The scale of economy of the grouping is most underrated.
Importantly, the fluid world order amid the never ending Russian invasion of Ukraine has sent nations dependent in imported oil and gas battered with their finances.
Bangladesh unlike Sri Lanka has had much better economy, with diversified economy and diaspora. Textile industry of Bangladesh and remittances sent by Bangladeshis abroad have in the recent years turned around the economy of the Bay of Bengal nation. Indeed, Bangladesh fares better than India on some of the social indicators, including the per capita income.
But imported inflation is costing governments, and Boris Johnson adds to the list which also includes Gotabaya Rajapaksa of Sri Lanka.
The closer economic integration for Sri Lanka and Bangladesh with India could provide cushion from the external shocks.
Importantly, the nations who have been the target of the Chinese debt-trap economic imperialism need to reinvent their economy.
Bangladesh and Sri Lanka have skilled manpower, and India is aspiring for a significant scaling up of the economy, with migration to knowledge and technology-based businesses.
The comprehensive economic pact with India will surely give Bangladesh the much needed leverage to scale up its businesses. Additionally, the emerging opportunities in the global supply chain for which India is also positioning speedily should equally be tapped by Bangladesh.
Pradhan Mantri Gati Shakti scheme in India is specially targeting infrastructure development in the border areas which can give speedy connectivity with the neighbouring countries. That will give a semblance of a well-connected BIMSTEC bloc.
In Hasina, India counts on a friend in Bangladesh. Unlike Pakistan where the Mullah-Military marriage has given birth to festering terrorism in the region, Bangladesh has been busy in making the life better for the people.
“We also decided to increase cooperation in sectors like IT, space and nuclear energy, which are of interest to our younger generations. We will also continue to cooperate on climate change and on preserving a common heritage like the Sundarbans,” Modi remarked in the presser along with Hasina.
While Bangladesh has been hoping for Teesta water sharing agreement for decades, the two country signed an agreement on sharing water of the Kushiyara River, which is only after similar pact with the sharing of Ganges signed in 1996.
This agreement will benefit Southern Assam in India and Sylhet region in Bangladesh, added Modi.
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