I have argued earlier that the vacillating nature of India’s neighbours need not overly worry Indian foreign policy makers.
beyond the security domain, there is very little that small states in India’s neighbourhood can do in India’s pursuit of prosperity for its citizens in the immediate future. As we enter a world economy that is getting increasingly protectionist in nature, international trade will become increasingly difficult. Fortunately, India’s big, relatively young, and diverse population means that greater domestic consumption alone can help us maintain high economic growth for the next 10 years or so. Barring Bangladesh, no other Indian neighbour has economic prowess that India cannot substitute domestically. So, in the short run, the economic benefits accruing from small states in the neighbourhood will continue to be marginal. [INI, April 7 2017]
A news report in Business Standard today gives an example for why Bangladesh is an exception.
The value of two-wheeler exports from India to Bangladesh jumped 50 per cent in FY18 to $277 million (Rs 19 billion), making it India’s biggest export market, ahead of Sri Lanka. The value of shipments to Bangladesh has more than doubled since FY16, when it was just $128 million…
Bangladesh is estimated to have exported readymade garments worth $29 billion in the calendar year of 2017. Riding on robust economic growth, the nation’s demand for motorcycles soared 50 per cent in 2017 to an estimated 360,000 units. The high double-digit growth continues in 2018 as well. [Business Standard, 20 Jul 2018]
In essence, India’s relationship with Bangladesh is strategic for multiple reasons. It can directly impact the peace and prosperity of a large number of Indians. The opportunity costs of not having Bangladesh on your side are far higher compared to our other neighbours.