SR97 Intro
SR97 Intro
Report
India-Bangladesh Relations
Issues, Problems and Recent Developments
97 Piyali Dutta
SEPTEMBER 2010
www.ipcs.org
ABOUT THE AUTHOR
Piyali Dutta was a Research Intern at the Institute of Peace and Conflict Studies. .
India’s Look East Policy: A Critical Assessment, Interview with Amb. Rajiv Sikri
Address: Anna Louise Strachan, Tuli Sinha and Harnit Kaur Kang, Special Report #85, October
B 7/3 Lower Ground Floor 2009
Safdarjung Enclave
New Delhi 110029 Suicide Terrorism in Pakistan: An Assessment
INDIA Jeremie Lanche, Special Report #84, September 2009
Tel: 91-11-4100 1900, 4165 2556, 4165 2557, How Prepared Are We? India and the Challenge of Nuclear Terror
4165 2558, 4165 2559 Sitakanta Mishra, Special Report #82, September 2009
Fax: (91-11) 4165 2560 From Bomb to the Base Camp: Global Nuclear Disarmament and the Ensuing Debate,
Email: [email protected] Interview with Dr. Scott Sagan
Web: www.ipcs.org Rekha Chakravarthi and Yogesh Joshi, Special Report #81, August 2009
INDIA-BANGLADESH RELATIONS
ISSUES, PROBLEMS AND RECENT DEVELOPMENTS
PIYALI DUTTA
Bangladesh, shares 4094 kilometers of has now become the largest single source
land border with India on three sides, the of its imports.
fourth side being open to the Bay of
Bengal. Political discontentment in Bangladesh
tends to stem from the huge trade gap,
Various issues need to be resolved if the supported by the fact that India has a lot
relationship between the two are to be of non trade barriers for Bangladeshi
improved, from sharing the water of 54 exports. Even though exports from
international rivers that flow from India Bangladesh are growing at a healthy pace,
to Bangladesh to controlling terrorism there is no sign of reducing this trade gap.
and promoting economic development.
The non trade barriers, as pointed out by
I Bangladesh Commerce Ministry, and cited
TRADE by the Daily Star include: 2
Laboratory tests in Bangladesh,
The trade relationship has had a especially for food products,
detrimental effect on bilateral cosmetics, and leather and textiles
relationship. The geographical proximity products.
of India to Bangladesh has made it one of Packaging requirements
its biggest trading partners. Inadequate infrastructure facilities
such as warehousing, transshipment
There are pressing concerns in yard, parking yard and
Bangladesh regarding the large bilateral Connecting roads at land customs
trade deficit with India and the large stations also hinder exports from
volumes of informal imports from India Bangladesh; the land border trade is
across the land border which avoid subject to very serious administrative
Bangladeshi import duties. Bangladesh’s constraints in Bangladesh. The most
bilateral trade deficit with India has been important of the Customs posts with
increasing rapidly on average at about comprehensive Customs clearance
9.5% annually. However, the deficit powers is at Benapole, which borders
narrowed for the first time in fiscal year Petrapole on the Indian side and
2005/06 when Bangladesh’s exports rose which is on main roads linking
to $242 million while India’s exports fell Kolkata with Jessore and Dhaka.
to $1.8 billion from $2 billion in officially
recorded exports.1 For Bangladesh, India As per the report by Bangladesh
Commerce Ministry, trade barriers
1
Executive Summary Report, 2005, “Studies on include:3
India-Bangladesh Trade, Trade Policies and
Potential FTA”,
2
http://www.worldbank.org.bd/WBSITE/EXTER Sajjadur Rahman, “Analysts urge India to
NAL/COUNTRIES/SOUTHASIAEXT/BANGL erase trade barriers to Bangladesh”, The Daily
ADESHEXTN/0,,contentMDK:20610536~menu Star, 11 January 2010
3
PK:295780~pagePK:64027988~piPK:64027986 “On India-Bangladesh Trade Imbalances”,
~theSitePK:295760,00.html Diganta , 2 February 2010,
IPCS Special Report 97, September 2010
2
India-Bangladesh Relations: An Update
While air transit is still widely used than India, New Delhi is left with the only
water transit, it has been considered option of urging the reopening of the
uncompetitive over the years. The goods northeastern routes through Bangladesh
carried from the Northeast of India to its West, and with Myanmar and south‐
reaches the mainland after traversing East Asia to the East. The region that is
Assam and North Bengal, taking a route also rich in energy resources like natural
much longer than what could have been gas and hydro‐electricity can progress,
the shortest through Bangladesh. In spite thus addressing problems that give rise to
of India’s frequent attempts to pursue the long‐ standing grievances, which in turn
Bangladesh government to open transit encourage insurgency surrounding the
for its economic activities, even at the cost region.
of a hefty sum, it has been continuously
refused on grounds that it is a possible The benefits of transit facility between
threat to national security. India and Bangladesh are not limited to
the Indian growth list. Bangladesh, whose
Transshipment versus Transit average GDP is 6% per year, can also
Transshipment refers to the shipment of become a regional hub.
goods or containers to an intermediate
destination, and then to yet another Role of the Asian Development Bank
destination. This has been achieved by ADB (Asian Development Bank) Country
India in its relationship with Bangladesh. Director Hua Du, pointed out in a seminar
Transit refers to the passage of Indian to Bangladesh, “You can benefit
good across Bangladeshi borders to and tremendously through opening up of
from the North Eastern states of Indian transit and great opportunities for
owned surface transport, while crossing from east to west and giving the
transshipment may also refer to the same land‐locked neighbours access to the
movement using Bangladesh‐owned sea.”6
transport. This remains an issue of
contention. The controversial issue of connecting
Bangladesh to the Asian Highway is
Bangladesh, on the 31 May, 2010 signed sustained by the anti Indian groups in
an agreement to finalize a transshipment Bangladesh. The Asian highway, also
deal with India to allow Indian goods to known as the Great Asian Highway, is a
be transported to the northeastern city of cooperative project among countries in
Tripura in the state of Assam through Asia and Europe and the United Nations
Bangladeshi territory. Anything produced Economic and Social Commission for Asia
in the northeast region of India faces the and the Pacific [ESCAP], to improve the
difficulty of marketing to the rest of the highway systems in Asia. Anti‐India
country, the main reason being the groups in Bangladesh for the opposition
distance to the port of Kolkata. With of the Asian highway scheme feel that:
globalization and the policy of
liberalization no foreign or private Transit facility once given is difficult
company is going to be inclined to invest to take back.
in the north‐east corner of India owing to
several hassles, including the rise in
transportation cost. Thus hampering the 6
Salah Uddin Shoaib Choudhury, “Transit,
development of the north eastern market. Asian Highway and other issues on table for
Bangladeshi Government”, American Chronicle,
To deal with such logistical problems of September 24, 2009,
linking the Northeast with the rest of http://www.americanchronicle.com/articles/view
/118555
IPCS Special Report 97, September 2010
It may give rise to more violent acts of water has been shaping relationships
terrorism and insurgency within the region’s states.
With the availability of transit
facilities to the North‐eastern Indian The Farakka Barrage
states that now depend on The origin of the dispute can be traced
Bangladesh for imports would move back to the Treaty of Friendship,
towards selling its own products to Cooperation and Peace signed by then
the region and Bangladesh will lose. Indian Prime Minister Indira Gandhi and
There is a fear of destroying the roads Bangladesh’s founding leader and Prime
and highways of Bangladesh by the Minister Sheik Mujibur Rahman on 19
Indian traders and gradually military March, 1972. According to the treaty, the
personnel passing through. two nations established a Joint River
There is an abundant lack of trust Commission to work towards the
between India and Bangladesh that common interests and sharing of water
resulted from India’s contradicted resources, irrigation, floods and cyclone
position on the Farakka Barrage and control. As per the treaty, the Farakka
the sharing of Ganga Water. Barrage was built in 1974, about 10
kilometers from the border of
The Chittagong port can become a Bangladesh, controlling the flow of the
modern busy port like Singapore and Ganges, possessing strong economic and
China serving the SAARC countries. religious importance, diverting some of
Huge foreign investment may be the water into a feeder canal linking the
attracted by Bangladesh and finally, a Hooghly River, keeping it silt free.
throbbing service sector like banks,
insurance, hotels, rest houses, petrol With increasing demands for water in
pumps etc. may develop around the Kolkata for industrial and domestic use,
Transcontinental roads and railways. and for irrigational purposes in other
There is an estimate of direct parts of West Bengal, dispute over the
economic gain from transit fees. It sharing of water is intensifying. The
ranges from 500 crore taka to 4,666 objective behind the construction of the
crore taka. Farakka Barrage was to increase the lean
The mutual transit will give period flow of the Bhagirathi‐Hooghly
Bangladesh a much shorter route to river branch of the Ganges to increase the
China and an initiative to link Chinese water depth at the Kolkata port which
province of Yunan with Seven Sisters was threatened by siltation. In November
of India, Myanmar, Thailand and 1977 the two countries proposed a five
Bangladesh. year agreement on water sharing.
However, the basic issue remained
unaddressed, leading to its lapse in 1982.
III Finally a comprehensive bilateral treaty
WATER was signed by the Indian Prime minister
H. D. Deve Gowda and his Bangladeshi
For centuries, natural resources have counterpart Sheik Hasina Wajed on 12
been a source of continual conflict December, 1996. This treaty established a
between nations, though unlike oil, which thirty year water sharing arrangement
still is a major cause of discord between with guaranteed minimum quantities of
nations, water remains a less disputed water supply for Bangladesh, whose
issue. But this varies regionally. In the rights as a lower riparian country was
Middle Eastern and North African states, recognized.
4
India-Bangladesh Relations: An Update
The 30 year water sharing treaty interpretation says that this treaty is
envisaged that the water of the Ganges successful in settling the dispute over the
River would be distributed from Farakka sharing of water, but contrary views on
for the two countries between 1 January the part of India and Bangladesh have
and 31 May of each year, and that India been extended over this treaty that also
was required to maintain the flow of has the provision of being reviewed at the
Farakka at the average level of the end of five years, or even at the end of
previous 40 years including any critical two years, if so wished.
period when Bangladesh would continue
to receive 35000 cusec of flow. This treaty The Bangladeshi view suggests:
essentially regarded the lean season flows There was unilateral diversion of
related to actual flows at various levels Ganga water by India at Farakka
not exceeding 75% dependable flows, as prior to the 30 year water sharing
in past agreements. The basic formula of treaty.
equal sharing during the lean season
flows had two modifications at the upper
and lower extremes. Governmental
7
http://www.defence.pk/forums/bangladesh-defence/59471-india-going-ahead-tipai-dam-2.html
This was a case of a large and more share and realize that water is an
powerful country disregarding the intangible asset that does not recognize
needs and interests of a small and political boundaries…there should be an
weaker neighbor, resulting in emphasis on water conservation and
reduction in flows that had serious optimum water management”.9
adverse effects on Bangladesh. This
view further ascribes to the big Teesta River Dispute
brotherly attitude of India over her The Teesta River enters Bangladesh near
neighbours.8 Nilphamari district and courses 45
Critics also emphasized kilometers through the predominant rice‐
environmental hazards such as growing districts of Rangpur, Lalmonirhat
raised salinity levels, contaminated and Gaibandha before meeting the
fisheries, hindered navigation and a Brahmaputra River in Kunigram. The
threat to the water quality and Teesta River floodplain that includes the
quantity. Silt levels were believed to extreme northwest region of the country
have an adverse effect on the accounts for 14% of the total cropped
Hooghly River and the Kolkata Port. area in 2001. Around 63% of the total
cropped area in the region is irrigated
The Indian view suggests: laying down a direct link between
That the water allocated to irrigational water availability and
Bangladesh leaves India with less agricultural use. The floodplain which is
water necessary for the functioning of presently considered a dry zone depends
the Kolkata port and the National on the Trans Boundary River flows
Thermal Power Corporation at between India and Bangladesh.
Farakka.
Bangladesh has taken an Sheikh Hasina in her three day visit to
unnecessarily rigid and unreasonable India on 10 January 2010 exchanged draft
stand on this issue. Greatly agreements on the Teesta water sharing
overstating its water needs, issue with India, after a two‐day
Bangladesh claims a disproportionate ministerial level meeting of the Joint River
share of water. Commission was held. While Bangladesh
presented a draft on an interim
Bangladesh High Commissioner to India agreement, India presented a draft of a
Mr. H.E. Tariq A. Karim, during his Statement of Principles on the sharing of
address at the Institute of Peace and river water during the dry season. The
Conflict Studies in New Delhi, regarding immediate achievement of this meeting
water sharing between India and was the decision that, within a year, an
Bangladesh commented that agreement over the Teesta River water
“Transparency in these matters is very sharing would be signed. It would provide
important…India and Bangladesh must key support to agricultural production in
not quibble about cusecs or percentage of the northwest region of Bangladesh. One
question that remained unanswered
regarded the amount of river water likely
8
Executive Summary Report, 2005, “Studies on to be shared between the countries.
India-Bangladesh Trade, Trade Policies and
Potential FTA”,
9
http://www.worldbank.org.bd/WBSITE/EXTER Seminar Report, #313, 17 February
NAL/COUNTRIES/SOUTHASIAEXT/BANGL 2010, “India-Bangladesh Relations”,
ADESHEXTN/0,,contentMDK:20610536~menu http://www.ipcs.org/seminar/bangladesh/indiaba
PK:295780~pagePK:64027988~piPK:64027986 ngladesh-relations-829.html
~theSitePK:295760,00.html
India-Bangladesh Relations: An Update
settle the above dispute Bangladesh In the Northeastern states like Nagaland,
proposed sending a joint Indo‐Bangladesh the population of Bangladeshi, mostly
team to determine the flow of channels of Muslim immigrants, have more than
the river on the basis of existing tripled in the past decade, from 20,000
International Law of the Sea. But the Bangladeshi immigrants in 1991, to more
Indian counterpart sent forces to than 75,000 as of 2001.
establish claims by stationing naval
troops on the island in 1981. After initial Drug Trafficking
resentment by Bangladesh, India agreed Bangladesh is increasingly being used as a
to resolve the issue through negotiations. transit point by drug dealers and the drug
Till now the sovereignty over the island mafia, which dispatches heroin and
nation remains undecided, and recent opium from Burma, and other countries
reports of the press and media suggests of the golden triangle, to different
that Bangladesh views India with destinations. As a result, Bangladesh’s
suspicion in its activities over the Department of Narcotics Control has
disputed piece of landmass on the breast come under the scanner several times and
of an international water. invited criticism. Bangladesh has become
the prime transit route for trafficking
heroin to Europe from Southeast Asia,
V according to a report from the
SECURITY CONCERNS International Narcotics Control Board
(INCB) 2007 annual report’10 .
Illegal immigration is a perennial problem
in almost all nations. Problems of INCB notes that the most common
immigration considered illegal have even methods and routes for smuggling heroin
led to the outbreaks of xenophobic into Bangladesh are by courier from
violence in certain places. India has Pakistan, commercial vehicles and trains
completed around 1357 kilometer fencing from India, and via sea through the Bay of
of the international border with plans to Bengal or overland by truck or public
cover another 2429 kilometer of border transport from Burma.
in the second phase and also plans to
illuminate around 300 kilometer of Anti Terror Cooperation
international border to prevent illegal The Ministry of Defence, India, expressed
migration. Cooperative measures like its interest in seeking Bangladesh’s ‘firm
joint patrolling of the border areas, cooperation’ in fighting anti‐India terror
consular access to prisons and signing of and insurgent outfits operating from its
an extradition treaty are on the verge of soil. The armies of both countries have, in
materializing as steps to increase vigil to the past, proved their might by fighting
check drug and arms trafficking, as well the ULFA cadres, by, for example, the
as illegal immigration, especially the handing over of Arabinda Rajkowa to the
trafficking women and children. The Indian Security agencies.
Centre for Women and Children Studies
based in Bangladesh estimated in 1998
that 27,000 Bangladeshis had been forced
into prostitution in India. Illegal
10
Bangladeshi migrants enter Indian “Bangladesh used as Heroin Trafficking
Territory to settle in rural areas like routes”, March 07, 2008, Narinjara News, Burma
News International,
Nandigram in West Bengal, as share
http://www.bnionline.net/news/narinjara/3719-
croppers. bangladesh-used-as-heroin-
traffickingroutes.html.
8
India-Bangladesh Relations: An Update
10