In 1997,the Indo-Bangladesh treaty of friendship,peace and cooperation which dates back almost to the countrys foundation,as it was signed in March 1972 was allowed to expire. Prime Minister Manmohan Singhs visit to Dhaka,which starts September 6,should be seen as an occasion to finally renew those historic links,and particularly to emphasise the economic benefits that will accrue to both countries from a closer partnership.
This extends well beyond the advantages to Indias landlocked northeastern states from access to Bangladeshs underutilised ports at Mongla and Chittagong,although that is possibly the biggest single idea on offer. What is needed is to ensure that there is considerable forward momentum on a range of bilateral projects,to demonstrate that economic partnership is a done deal. This momentum has been noticeably lacking of late on the Indian side; it appears,for example,that a 1320-megawatt coal-fired plant that NTPC was due to set up for Bangladesh might not happen in time due to,in part,the feasibility estimate from NTPC reportedly coming in months behind schedule. The most important location for an impetus to economic partnership will be in opening Indian markets more fully to Bangladeshi goods. This will involve two major pieces of effort: the first is in resisting lobbying from Indian domestic textile producers,and open Indian markets to garments from Bangladesh,which account for three-quarters of that countrys exports. This step is overdue,and should be the centrepiece of the PMs visit. It will be meaningless,however,unless a corresponding effort is made to dismantle non-tariff barriers Bangladeshi business faces particularly through inept,underfinanced and obsolescent border crossing infrastructure.
Border crossing infrastructure,after all,will also be crucial for India if transit agreements with Bangladesh finally work out as hoped. West Bengal and the Northeast will both benefit hugely from closer ties with Bangladesh; and upgrading that countrys internal infrastructure is something that benefits India,too. Dr Singh is going to Dhaka with the chief ministers of the five states that border Bangladesh. That is a signal for hope.