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Guwahati: With Guwahati as a hub, NE economy can grow manifold
India and Bangladesh always shared a special relationship for their social, cultural and economic ties. The northeastern region especially has been a medium of strong bilateral trade with the neighbouring country. The region shares a trade relationship worth $170 million with Bangladesh.
In an interview with Business Northeast, Assistant High Commissioner (AHC) & Head of Mission of Bangladesh Assistant High Commission, Guwahati, Ruhul Amin, asserts that there are ample opportunities to grow in trade relations with northeast India. Excerpts:
BNE: The bilateral trade between India and Bangladesh has increased manifold in recent years. In this context, what is the volume of trade taking place with northeast India?
AHC: The business relationship between Bangladesh and India is flowing every year. Our trade with northeast India is of $170 million. There are ample opportunities to grow our trade relations with northeast India. From this region, a lot of products that are in high demand in Bangladesh particularly fruit products — oranges, pineapple, spices like ginger and garlic. This could be exported from the North East to Bangladesh. There is also demand for cane and bamboo products. Northeast India produces very good cane and bamboo products. If this can be promoted in Bangladesh, this will give a good market in Bangladesh. From Bangladesh, products like garments, plastic goods, food products like from renowned Bangladeshi company like Pran are being exported to the North East. There is a demand for ceramic and also melamine products. There is export of jute and jute products from Bangladesh as well.
BNE: India has put a lot of emphasis on increasing business activities with its immediate neighbours under Act East Policy under which it wants to make the northeastern states a trading hub. What kind of opportunities does Bangladesh see in trade with the NE states?
AHC: The Government of India has rightly adopted the Act East policy to develop the livelihood of the people of Northeast India. There is a huge scope because you know 90.8% of the total border of the northeast region is with countries like Bangladesh, Myanmar and Nepal. So, if based in northeast India, particularly making Guwahati a hub of this communication and also trade and business relations, I believe, the economy of the region can grow manifold. The Government of India has taken a lot of steps to develop the infrastructure of northeast India. It has taken a lot of initiatives so that the northeast India relation prospers in co-operation with the neighbouring countries. Bangladesh has land border with some of the northeast states such as Assam, Meghalaya, Tripura and Mizoram. Utilising the trade and business relations with Bangladesh definitely northeast India and also Bangladesh can be benefited.
BNE: Bangladesh is one of the leading manufacturers of textiles products. Is there any plan to market Made in Bangladesh garments in the NE region?
AHC: Definitely! Now, Bangladesh is the second largest RMG (readymade garments) exporter after China in the world. Readymade garments have been the backbone of our economy over the years. A large share of our export earnings comes from RMG export. Currently, our main market is United States of America (USA) and European countries. But, slowly and gradually our RMG products are also exported to Asian countries including India. Some of our garment products are being exported to northeast India. The people and businessmen of northeast India can take the opportunity since Bangladeshi products are of very good quality. There is geographical proximity between Bangladesh and northeast India, particularly with Assam. So, I will definitely appreciate if the business community from the North East is interested to import Bangladeshi RMG products to this market. This will definitely be a win-win situation for both of us. Our product could be used by people of the North East. Definitely, good quality products can be availed of at a cheaper price. It has an immense scope to grow.
BNE: Is the connectivity issue a hindrance for the growth of business activity between Bangladesh and the North East?
AHC: Yes, connectivity is the precursor of trade and investment relationship. It is not only trade and investment, but also for the flourishing of education, for tourism and all the aspects of economic life. It depends on the connectivity. Although Bangladesh is a neighbouring country, there are of course some connectivity issues. For example, we do not have any direct air flight from Guwahati. Although in 2018, a flight was introduced between Guwahati and Dhaka for a short period, but it stopped. Since then, as we are aware that the government of Assam is working on it to actually re-establish this air route. If there is a direct air connectivity particularly with northeast India, particularly with Guwahati lot more people will come and business will grow. There will be people-to-people contact. In fact, people need this sort of opportunity so that they can actually come and visit each other’s countries and get to know each other better. These are the opportunities we need to avail, of course. In terms of connectivity, there is waterways. We share the Brahmaputra river with Assam. We can utilise the waterways for trade and tourism. That will be beneficial for both our countries. Recently, the MV Ganga Villas which is the world’s longest river cruise, actually traversed few states of India and also Bangladesh. It was in Bangladesh for 14 days. Tourists (all of them were foreign tourists) could explore beautiful places in India and also in Bangladesh. This is the way we can co-operate and collaborate in terms of connectivity. Also, in terms of trade there are some border haats between Bangladesh and India in the northeastern part. I believe we can introduce more border haats along the border so that our products could be exchanged and trade could actually grow by manifolds. Also, in terms of connectivity we don’t have any direct bus service at this moment. We had one between Dhaka and Shillong. But it had to be stopped during the covid period. After that, it has not been resumed yet. We are pursuing if that bus route could be re-established not only till Shillong, it could be from Dhaka to all the way to Guwahati. People do not have that much of hassle to visit Bangladesh from India. Our honourable Foreign Minister visited Silchar in December last year. During his visit he floated an idea to establish direct bus service between Sylhet and Silchar. Historically, Sylhet and Silchar are so close, culturally also, If the bus service between Sylhet and Silchar could be established that would be very good for connectivity and movement of people, movement of good, etc.
BNE: What kind of products are exported from Bangladesh to India?
AHC: Currently, Indian business people are importing garments, some melamine products, some fruit products and fishes. These are the items. But as I have said there is ample opportunities to grow. Since we are two neighbouring countries, utilising the geographical, historical, cultural proximity our business has ample scope for growth. The Assistant High Commission of Bangladesh is working on it so that our trade volume with northeastern states actually grow manifold.
BNE: What are the products and services from this region that is in demand in Bangladesh?
AHC: From the northeastern region mainly the food products are going. Good quality orange juices are going. Some ginger is being exporting to Bangladesh also some mineral products like coals, boulders, stones etc. These are the main products which are actually going from the northeastern region to Bangladesh.
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