How Northeast India-Bangladesh Can Reshape Regional Trade, Bangladesh Assistant High Commissioner Explains

Guwahati: Bangladesh and Northeast India, linked by their shared geographical proximity and historical ties, hold immense potential for economic collaboration. Despite these advantages, trade between the two remains significantly underutilized, accounting for less than 1% of the USD 18 billion bilateral trade between Bangladesh and India in the last fiscal year.

In an exclusive interview with Pankhi Sarma for Business North East (BNE), Ruhul Amin, Bangladesh Assistant High Commissioner in Guwahati, highlights the current trade scenario and explores opportunities to bridge this gap. With Bangladesh’s strength in ready-made garments (RMG) and Northeast India’s resources in agriculture and minerals, Amin highlighted the need for enhanced infrastructure, removal of non-tariff barriers, and strategic partnerships to foster mutual economic growth.

Amin also discussed Bangladesh’s resilience in the face of recent challenges and the strategic importance of the South Asian region in global trade, envisioning a future of thriving cross-border collaboration between the two countries. 

Here are the excerpts from the Q&A interview:

BNE: What is the current trade scenario between Bangladesh and Northeast India?

Ruhul Amin: It’s an essential topic, especially when fostering economic integration between Bangladesh and Northeast India. It is a significant opportunity to create a platform for the business communities of this region, including Bangladesh. During the last fiscal year, bilateral trade between Bangladesh and India reached USD 18 billion. However, the trade volume between Bangladesh and Northeast India remains notably low, accounting for less than 1% of the total trade between our countries.
This is surprising, given the geographical proximity and cultural ties between the Northeastern states and Bangladesh. There is immense potential to increase this trade volume between Bangladesh and the Northeast for several reasons. Bangladesh is well-positioned to export a variety of high-quality goods to Northeast India. Similarly, the Northeast can offer agricultural products, minerals, and other region-specific commodities for export to Bangladesh.

Bangladesh offers a range of high-quality exportable goods suitable for Northeastern India, while Northeast India is rich in various products such as agricultural produce and minerals. A two-way trade exchange could be highly beneficial, fostering economic growth. With a fully-fledged trade partnership, India and Bangladesh can capitalize and unlock significant mutual benefits.

BNE: The textile industry has been a major economic driver for Bangladesh. How do you view the potential for exploring this industry’s prospects in the Northeast region?

Ruhul Amin: Absolutely, the ready-made garments (RMG) sector is the backbone of Bangladesh’s economy. Over 80% of our export earnings come from this single sector, making it pivotal to our economic structure. Bangladesh is the second-largest RMG exporter in the world, following China. This sector employs more than 6 million people, including women, playing a crucial role in socioeconomic development.

There is significant demand for Bangladesh RMG products in India, including the Northeast region. Some RMG products are already making their way into the Indian market. However, the full potential of this sector has not yet been realized. We have world-class products exported to European, Western, and other developed countries. Therefore, it is logical to expand this reach to Northeastern India.

Bangladesh currently exports approximately USD 1 billion worth of RMG products to India. However, addressing barriers, primarily non-tariffs, is necessary for the Northeast. 

There is a strong demand for quality garments in the Northeastern states, and we believe that with better infrastructure and policy support, Bangladeshi RMG products could establish a significant presence in this region. Collaboration between Bangladeshi manufacturers and Northeastern stakeholders could also lead to mutual growth. If these barriers are mitigated, Bangladeshi RMG exports could significantly increase their presence in this region. For example, joint ventures or partnerships with local businesses in the Northeast could facilitate the distribution of RMG products. Similarly, removing non-tariff barriers and simplifying trade regulations would enable smoother transactions, creating a win-win situation for both sides.

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BNE: Given the recent political shifts in Bangladesh, has there been any impact on trade or business activities, especially in the South Asian region?

Ruhul Amin: While the recent political transitions in Bangladesh did cause some temporary disruptions, I am pleased to share that business operations have stabilized. Factories are operational, workers are back on the production lines, and our export earnings have resumed their progression across different markets.

Bangladesh remains a hub of economic activity, and our trade relationships with neighbouring countries, including India, continue to thrive. There has been no long-term impact on trade or business. On the contrary, we are committed to strengthening our role as a key trade partner in South Asia.
South Asia is a critical gateway for international trade, and Bangladesh’s strategic location places us at the heart of this ecosystem. Moreover, the region can unlock immense trade potential by fostering collaboration and addressing challenges collectively.

BNE: What measures or steps would you recommend to enhance trade between Bangladesh and Northeast India?

Ruhul Amin: To improve trade between Bangladesh and Northeast India, we need a multi-pronged approach:

1. Infrastructure Development:
   Enhancing cross-border infrastructure, such as roads, railways, and waterways, is crucial. For example, seamless connectivity between major trading hubs in Bangladesh and Northeastern states like Assam, Tripura, and Meghalaya would significantly boost trade volumes.
   
   2. Addressing Non-Tariff Barriers:
   Non-tariff barriers are a significant challenge for Bangladeshi exports. Simplifying customs procedures, reducing bureaucratic hurdles, and harmonizing standards can pave the way for smoother trade.
   
   3. Strengthening Border Trade Points:
   Developing well-equipped border trade points with modern facilities will encourage more businesses to engage in cross-border trade.
   
   4. B2B Collaboration:
   Encouraging business-to-business (B2B) collaborations can help businesses from both regions identify synergies. Regular trade fairs, business summits, and networking events can facilitate these interactions.
   
   5. Promoting Niche Products:
   The Northeast has unique agricultural products, handicrafts, and natural resources, while Bangladesh has strengths in textiles, electronics, and processed foods. Promoting these niche products could create new avenues for trade.
   
   6. Bilateral Agreements:
   Entering into bilateral agreements that focus on trade facilitation and resolving specific issues can enhance economic ties.

BNE: What is your vision for trade relations between Bangladesh and Northeast India?

Ruhul Amin: My vision is to see Bangladesh and Northeast India emerge as vibrant trading partners. Our shared history, cultural ties, and geographical proximity provide a strong foundation for collaboration.
By addressing current barriers and leveraging the strengths of both countries, we can create a thriving trade corridor that benefits businesses and communities on both sides. I am optimistic that with sustained efforts, we will see significant growth in trade volumes and economic integration in the coming years.