The world is encountering a turbulent fourth industrial revolution that may shatter the Bretton Woods global economic structure, which structured the existing trade, economic and investment architecture of the world.
In South Asia, an example of such collaborative endeavors, encompassing security, trade, connectivity, energy, power, and maritime affairs, could be the relationship between Bangladesh and India.
Significant strides in bolstering bilateral relations between the countries were seen in recent times. Commencing with the amicable resolution of the protracted land boundary dispute in 2015, India and Bangladesh have partnered in numerous developmental projects. For instance, India has extended its Line of Credit, amounting to over eight billion dollars at a concessional rate, to finance several infrastructure and connectivity initiatives in Bangladesh.
Connectivity projects such as a multimodal road-rail link connecting Agartala in India’s Tripura to Akhaura in Bangladesh is a prime model. India is also involved in the construction and installation works in Bangladesh’s nuclear power plant facilities such as at Rooppur in the Pabna district. In the energy sector, Bangladesh is importing nearly 2,000 megawatts of electricity from India which is set to register an increase of at least 138 per cent in the coming year.
The Framework Understanding on Cooperation in the Hydrocarbon Sector and measures like the India-Bangladesh Friendship Pipeline Project connecting Siliguri in West Bengal (India) to Parbatipur in Dinajpur district (Bangladesh) is aimed at fortifying energy security partnership between the two countries. The total cost of the project's construction is Rs 377.08 crore, with Numaligarh Refinery Ltd investing Rs 91.84 crore for the Indian portion of the pipeline, and the Indian government funding the remaining Rs 285.24 crore for the Bangladesh portion as grant-in-aid.
In the first instance, it will endow Bangladesh with a dependable reservoir of natural gas, which is a more efficacious and cleaner energy alternative compared to other fossil fuels such as coal and oil. Secondly, it will augment energy security for both countries by curtailing the dependence on imports of fuel and other energy sources. Thirdly, by generating novel prospects for business and investment in the energy sector, notably in the natural gas domain, it will foster economic growth and development in both countries. Fourthly, the diversification of Bangladesh's energy industry is facilitated by the import of diesel from India.
The present heavy reliance on natural gas as the principal energy source makes Bangladesh susceptible to changes in price and supply. Finally, Bhutan and Nepal will also reap benefits from the pipeline project. The two countries will have an opportunity to participate in the regional energy market and gain access to a
reliable energy source.
The government of Bangladesh has established 100 Bangabandhu economic zones across the country. Investments are taking place. India has poured investment in several economic zones, including the Mongla Economic Zone, the Meghnaghat Economic Zone, and the Bheramara Economic Zone. These economic zones will generate and export an additional $40 billion worth of goods annually while providing employment opportunities to millions. For unknown reasons, people at home and abroad are not aware of this gigantic level of collaboration between India and Bangladesh.
The relationship between Bangladesh and India serves as an excellent example of South-South Collaboration lending resonance to the economic potential of the global south.
Writer: Researcher and Columnist