There is widespread propaganda that India exploits Bangladesh commercially and economically. However the realities are far different
Dynamics of Indo-Bangladesh trade relations
Firoz Rahman
Bangladesh, no doubt, is an important destination for Indian exports. But Indian businesses have won market shares in Bangladesh by their own right as efficient producers and suppliers of goods. They are not necessarily bullying Bangladesh into buying their products.
It is not that only India gains from such exports for Bangladesh also gains. The geographical nearness means that the freight costs or per unit costs of the delivery of an Indian product is cheaper for Bangladesh than from any other import source and also the quality of Indian products are found to be satisfactory. Bangladeshs export oriented readymade garments (RMG) sector obtains a bulk of its raw materials or fabrics from India at costs cheaper than from China and other suppliers and the goods also arrive faster helping quicker production which in turn shortens the lead time for the local RMG exporters.
Bangladesh has for many years met a substantial part of its requirements of food grains from India. Cheap and reliable import of food grains from India has helped food security in Bangladesh.
Some years ago when food grain production slumped round the world and India was also a part of this decline in food grain production, nevertheless India had gone on to progressively keep its pledge to supply 0.5 million tons of rice to Bangladesh at a price which was notably lower than the prevailing international prices.
Bangladesh has to import a large and wide range of products and importing these from India prove to be comparatively cheaper and reach this country faster in contrast to any other regional source. Even the sacrificial cows for the religious Eid-ul-Azha festival in Bangladesh come in great number from India. Without this trade, many persons in Bangladeshis would have to go without observing the religious rite of animal sacrifice.
If Bangladesh has not been exporting as much to India, the same can be traced to the fact that Indian producers of the goods that Bangladesh would likely export to India, they are more efficient producers in terms of quality and offer better competitive prices than the Bangladeshi ones.
In many cases, Bangladeshi exporters cannot meet the quality certification requirements of that country. But in the media in Bangladesh, India is often blamed for keeping Bangladeshi products out of its market by setting non-tariff barriers.
How the Indo phobia works could be seen from the vitriolic reactions in some quarters to a suggestion from the Indian ambassador-- when Bangladesh was under a caretaker government-- that Bangladesh should consider the Indian proposal for giving transit to his country through Bangladesh territories. No sooner this comment was made by the Indian diplomat that there was an outpouring of concern, anxiety and even spiteful remarks as if the government in Bangladesh has surrendered to India on an issue on which hinges the protection of the sovereignty of Bangladesh. The reactions were so conspicuous and loud that the foreign adviser at that time chose to give a clarification that government here had done nothing of the kind like agreeing to the transit proposal.
But the adviser would do better to use the opportunity to rightly help public understanding of the issue by adding that the Indian proposal is nothing alarming or that India is not keen on pushing it down our throat against our will. It could be further clarified on the occasion that access to north-east India from the rest of India poses a very formidable geographic problem for India for which reason it wants transit through Bangladesh.
He could then go on to say that Bangladesh faces difficulties in entertaining the proposal right away because present road systems in Bangladesh would be severely stressed from allowing such transit and that road building must precede the acceptance of the proposal. Further it could be added that Bangladesh would have to consider political and security implications such as insurgents in north eastern Indian states interpreting Bangladeshs acceptance of such a proposal as a step against them and in favour of Indian forces. This would make Bangladesh also a target of the insurgents and affect its security. The foreign adviser could go on and say that Bangladesh was not rejecting the proposal outright and welcomes it as a meritorious one but would take time to consider its various aspects before having further discussion with Indian authorities on the issue.
But instead of such an elaborate statement explaining the Bangladesh stand, the official response of Bangladesh to the transit proposal at that time might have appeared to the Indian government as a curt one. Needless to say, such responses serve neither diplomacy nor the cause of good relations or understanding between neighbours.
The writer is a Dhaka based businessman
