No country is an island. Every nation depends on another for support. India is no exception. And so is Bangladesh. India and Bangladesh even have close relationship because Bangladesh was once a part of India called East-Pakistan that got divided later into an independent nation in 1971.
Because of porous India-Bangladesh border and other reasons such as the absence of paper work, access to good markets, high duties in official channels, very less scope of lesser time to reach the destination for perishable goods, shortage of warehouse facilities etc. led to perpetual illegal and informal trading practices between India and Bangladesh. Issue of balance of payments also arose due to the illegal migrants remitting their earnings in a foreign land through informal channels. The magnanimity of informal trade coincides with formal trade. Formal trade accounts for country’s GDP but informal doesn’t.
Illegal goods included textiles, consumer goods (salt, sugar), drugs, intoxicants, narcotics, foreign and fake currencies, illegal arms, ammunition and a whole list of others including even cattle, women and children.
After 40 years, trying for almost 4 times to resolve the border demarcation issue, it finally got settled on 6 September 2011 during the visit of our Prime Minister to Bangladesh where the two, Dr. Manmohan Singh and Sheikh Hasina (Prime minister of Bangladesh) signed a Teesta treaty where the enclave people can either continue residing or move to a country of their choice. But this resulted in a 10,000 acres net loss of land for India. But for keeping up the bilateral relations intact, India took a step forward. As part of this treaty, India even announced 24 hour access to Bangladesh into Tin Bigha corridor.
There were many initiatives taken up as a result of the series of agreements made in this treaty. The most important of all being the signing of Coordinated Border Management Plan on July 30, 2011.
This decision has helped formulate cooperative border management practices in order to deal with the rampant illegal activities near the border effectively. The initiatives taken will help build the bilateral relationship further unless these initial steps are continued and kept in good spirits.
Trade and commerce will increase manifold and there will be a flow of goods and people across the countries on a large scale. In order to increase trade and commerce across the border, India and Bangladesh should co-operate to keep the border secure and in a way that enhances trade efficiency.
Informal trade is the major factor that is to be targeted with great precision. Also lack of effective management, political corruption among administrators and other leaders in the bordering districts are a major stumbling block which has to be seriously addressed.
This treaty is a very big step towards improving the economic conditions of both the nations. With an optimistic outlook, the leaders on both sides should try filling the loop holes in the trading practices so that there is a well-rounded growth of both the economies.
By Nanditha Chepuri
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