As per the recent report titled “Connecting to Thrive: Challenges and Opportunities of Transport Integration in Eastern South Asia” released by World Bank, India and Bangladesh have the potential to increase their national Gross Domestic Product (GDP) by 8% in India in particular road connectivity and 17% in Bangladesh with seamless transport connectivity between two countries.
- Also report suggested Bangladesh, Bhutan, India & Nepal (BBIN) eastern sub-region countries became an economic growth pole for South Asia.
i.The report analysed the Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicles Agreement (MVA) and finds the strength of MVA and proposes policy actions the countries can take to strengthen the MVA.
ii.Development in connectivity tends to be used for growth in BBIN (Bangladesh, Bhutan, India and Nepal) countries and the World Bank is an active partner to invest in this area in this sub-region.
iii.An important component of this development is for countries to invest in connectivity such as rail, inland waterways, and roads. Actions to improve regional connectivity.
iv. Regulate the infrastructure design and expand the effective capacity of core transport and logistics infrastructure along regional corridors will improve regional connectivity.
v.Trade between neighbouring countries is said to account for 10% of Bangladesh’s trade and just 1% of India’s trade. Whereas, in East Asian intraregional trade accounts for 50% and Sub-Saharan African economies, are 22% of total trade.
vi.Trade between India and Bangladesh has increased significantly over the past decade, but it estimated to be $ 10 billion lower at its current potential.
Export Between India & Bangladesh
- Bangladesh’s exports to India could increase by 182% and India’s exports to Bangladesh by 126% if the countries signed a free-trade agreement as per World Bank’s earlier reports suggestion.
- Improving transport connectivity between the two countries could increase exports even further such as 297% increase in Bangladesh’s exports to India and a 172% increase in India’s exports to Bangladesh.
Motor Vehicles Agreement (MVA)
- Motor Vehicles Agreement between the (Bangladesh-Bhutan-India-Nepal) BBIN countries was signed in 2015 to make the smooth cross-border movement of cargo, passenger, and personal vehicles between these four countries.
- Under the agreement, trucks carrying export-import or transit cargo can move inside the territories of other countries without trans-shipping to local trucks at border land ports.
- However, the implementation of the MVA has been delayed as the countries work to clarify some of the provisions that are supposed.
Key policy actions to strengthen the MVA :-
- Harmonizing driver’s licensing and visa regimes
- Establishing an efficient regional transit regime
- Rationalizing and digitizing trade and transport documents
- Liberalizing the selection of trade routes
About World Bank
World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries. It comprises of two institutions such as the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA). The World Bank is a component of the World Bank Group.
Headquarters – Washington ,D.C,United States
President – David Malpass
MD and CFO – Anshula Kant (Roorkee, India.)