India’s Role in Bay of Bengal Trade
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| Sagarmala Project |
Positive Developments
Trade from eastern ports (Visakhapatnam, Paradip, Haldia) is increasing.
BIMSTEC Maritime Agreement was signed to:
Cut down trade costs.
Make port processes smoother.
Coastal shipping and sea trade are a national priority.
India’s Sagarmala programme is improving ports and transport links.
India’s Decision on Bangladesh Transshipment
What Happened
In April, India stopped Bangladesh from using its ports to send goods to other countries.
India said ports were too busy and causing delays.
How Bangladesh Saw It
Bangladesh thought it was due to their closer ties with China.
Bangladesh’s leader called Indian Northeast states “landlocked” and said Bangladesh is their sea lifeline.
This upset India, which values its Northeast region and its connectivity role.
Problems with Politicising Trade
Impact on Bangladesh
Bangladeshi exporters, especially in the garment sector (85% of exports), will suffer.
Indian ports were cheaper and faster.
Other options (like Sri Lanka) cost more and take longer.
Harm to Regional Trust
India promoting regional cooperation through BIMSTEC.
But taking back port access over political reasons can damage that image.
It adds uncertainty and affects regional confidence in India.
Rising Tensions
India’s Import Restrictions
In May, India restricted imports of some Bangladeshi goods (like clothes and food) through land ports.
Now these goods must come through sea ports, increasing costs.
India said it was reacting to Bangladesh restricting yarn imports — though India acted first.
Bangladesh’s View
Many think India’s reaction was too strong and unfair.
Shows trade is being used as political pressure.
India’s Leadership at Risk
Concerns from Neighbours
Bangladesh is also engaging with China, Pakistan, and promoting itself as a regional link.
Other countries like Myanmar, Thailand, and Sri Lanka are watching closely.
They may also start to doubt India’s reliability.
India’s Strength
India has the best ports and trade facilities in the region.
But trust (credibility) is just as important as good infrastructure.
Future of Bay of Bengal Trade
Opportunities
Bay of Bengal can become a strong trade route between South and Southeast Asia.
A successful BIMSTEC trade deal can boost this.
Risks
Political issues are mixing with trade decisions.
This may weaken cooperation if not handled carefully.
What India Can Do
Suggestions
Clearly explain when and how the transshipment facility for Bangladesh can return.
Or better, create fixed rules so trade is not affected by political changes.
Finding the Balance
India must balance between protecting its interests and building trust.
Right now, its actions are giving mixed signals.
By: Shivam Saxena
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