UPSC International relation

Indo Bangladesh Inland Water Transit And Trade Protocol IWTTP

April 26, 2025
5 min read
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An Indian consignment of goods officially reached Tripura through Bangladesh's inland waterways under the Indo-Bangladesh Inland Water Transit and Trade Protocol (IWTTP). The IWTTP, initially signed in 1972, was revised and extended in 2016 to revive river transport between the two countries, reminiscent of the pre-Independence era.

As part of this protocol, India is investing in infrastructure development, including ports, roads, and railways, at Ashuganj port (located on the Meghna River in Bangladesh) and the Akhaura Checkpost (Agartala). This aims to facilitate the smooth movement of goods to the Northeastern states of India. The Kolkata-Ashuganj-Tripura route reduces the distance between Kolkata and Agartala, which previously involved traversing Siliguri's 'chicken neck' and passing through Assam and Meghalaya, from 1,600 km to 500 km. The revised protocol also grants India and Bangladesh the right to use each other's territory for transiting goods to third countries.

Introduction

The Indo-Bangladesh Inland Water Transit and Trade Protocol: A Deep Dive into Regional Connectivity

The successful transit of Indian goods to Tripura via Bangladesh's waterways in 2018, facilitated by the Indo-Bangladesh Inland Water Transit and Trade Protocol (IWTTP), represents a significant milestone in regional connectivity and bilateral relations. This event, while seemingly a routine logistical operation, underscores the strategic importance of inland waterways as a viable alternative to traditional land routes, particularly for India's Northeastern states. The IWTTP, far from being a new initiative, has its roots in the historical trade relations between the two countries and has been revitalized to meet contemporary needs and challenges.

Historical Context: Partition and its Lingering Effects

To fully appreciate the significance of the IWTTP, it is crucial to understand the historical context that shaped the relationship between India and Bangladesh. The partition of India in 1947, which led to the creation of Pakistan (East and West), fundamentally altered the region's geopolitical landscape. The partition not only divided communities but also disrupted established trade routes and economic linkages that had existed for centuries. The eastern part of Bengal, which became East Pakistan, found itself geographically separated from West Pakistan by a vast expanse of Indian territory. This geographical separation, coupled with political and economic disparities, eventually led to the Bangladesh Liberation War in 1971.

Before the partition, the Bengal region was a hub of economic activity, with rivers serving as the primary mode of transportation and trade. The Padma, Meghna, and Brahmaputra rivers were the lifelines of the region, connecting various towns and cities and facilitating the movement of goods and people. Major trading centers like Dhaka, Chittagong, and Kolkata were heavily reliant on these waterways for their economic prosperity. However, the partition abruptly disrupted this established system, leading to the decline of inland water transport and the emergence of new logistical challenges.

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The creation of East Pakistan resulted in the imposition of new borders and trade barriers, which significantly hampered the flow of goods between the two countries. The traditional trade routes were severed, and new infrastructure had to be developed to connect the region. This process was further complicated by the political tensions between India and Pakistan, which often spilled over into trade and economic relations.

The Genesis of the IWTTP: A Post-Liberation Initiative

Following Bangladesh's independence in 1971, India and Bangladesh embarked on a new chapter in their relationship. Recognizing the importance of regional connectivity and trade, the two countries signed the IWTTP in 1972. The primary objective of the IWTTP was to revive the historical trade routes and facilitate the movement of goods between the two countries through inland waterways.

The IWTTP was a landmark agreement that laid the foundation for closer economic cooperation between India and Bangladesh. It provided a framework for the use of inland waterways for trade and transit, outlining the procedures for customs clearance, navigation, and other related matters. The agreement also specified the routes that could be used for transit, as well as the types of vessels that were allowed to operate on these routes.

Initially, the IWTTP focused on a limited number of routes and commodities. However, over the years, the agreement has been expanded and revised to include more routes and products. The 2016 revision of the IWTTP was particularly significant, as it aimed to address some of the key challenges that had hindered the effective implementation of the agreement.

Key Features of the IWTTP

The Indo-Bangladesh Inland Water Transit and Trade Protocol is a comprehensive agreement that covers a wide range of issues related to inland water transport and trade. Some of the key features of the IWTTP include:

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  • Designated Routes: The IWTTP specifies the routes that can be used for trade and transit between India and Bangladesh. These routes typically follow the major rivers in the region, such as the Ganges, Brahmaputra, and Meghna.
  • Vessel Requirements: The agreement outlines the requirements for vessels operating on the designated routes. These requirements include specifications for vessel size, safety equipment, and crew qualifications.
  • Customs Procedures: The IWTTP establishes procedures for customs clearance and documentation to ensure the smooth movement of goods between the two countries. These procedures are designed to minimize delays and reduce the administrative burden on traders.
  • Navigation Rules: The agreement includes navigation rules to ensure the safe and efficient operation of vessels on the designated routes. These rules cover issues such as vessel speed, right of way, and signaling.
  • Transit Rights: The IWTTP grants India and Bangladesh the right to use each other's territory for transiting goods to third countries. This provision is particularly important for India's Northeastern states, which are geographically isolated from the rest of the country.

The Significance of Ashuganj Port and Akhaura Checkpost

Ashuganj Port, located on the Meghna River in Bangladesh, and the Akhaura Checkpost, situated in Agartala, Tripura, are two critical pieces of infrastructure in the IWTTP framework. These facilities play a crucial role in facilitating the movement of goods between India and Bangladesh and are essential for the success of the agreement.

  • Ashuganj Port: Ashuganj Port serves as a major transit point for goods moving between India and Bangladesh. The port is equipped with modern facilities for handling cargo, including cranes, forklifts, and storage areas. India has invested significantly in the development of Ashuganj Port to improve its capacity and efficiency. The port is strategically located on the Meghna River, which connects to other major rivers in the region, making it an ideal hub for inland water transport.
  • Akhaura Checkpost: The Akhaura Checkpost is an integrated check post located on the India-Bangladesh border in Agartala, Tripura. The check post facilitates the cross-border movement of goods and people between the two countries. It is equipped with customs and immigration facilities to ensure the smooth and efficient processing of travelers and cargo. The Akhaura Checkpost is a vital link in the IWTTP, as it connects the inland waterways of Bangladesh with the road and rail networks of India.

The Chicken Neck and the Quest for Alternative Routes

The "Chicken Neck," also known as the Siliguri Corridor, is a narrow strip of land in West Bengal that connects India's Northeastern states to the rest of the country. This corridor is a strategic choke point, as it is the only land route connecting the Northeast to the mainland. The Chicken Neck is vulnerable to disruption due to natural disasters, political instability, or security threats.

The IWTTP offers an alternative route to bypass the Chicken Neck and enhance connectivity to the Northeast. By using inland waterways through Bangladesh, goods can be transported to the Northeast without having to pass through the narrow corridor. This not only reduces transportation costs and time but also enhances the security of the supply chain.

The IWTTP is particularly beneficial for Tripura, which is heavily reliant on the Chicken Neck for its connectivity to the rest of India. The state has historically faced logistical challenges due to its geographical isolation and the vulnerability of the Siliguri Corridor. The IWTTP provides Tripura with a more reliable and cost-effective route for accessing markets and supplies.

India's Act East Policy and the IWTTP

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The IWTTP is closely aligned with India's Act East Policy, which aims to strengthen India's economic and strategic ties with the countries of Southeast Asia. The Act East Policy recognizes the importance of regional connectivity and trade in promoting economic growth and development.

The IWTTP is a key component of India's efforts to enhance connectivity with Southeast Asia. By improving connectivity with Bangladesh, India can facilitate trade and investment flows between the two countries and create new opportunities for economic cooperation. The IWTTP also supports the development of regional value chains and promotes the integration of the Northeast into the broader regional economy.

The BBIN Initiative: A Broader Vision for Regional Connectivity

The BBIN (Bangladesh, Bhutan, India, Nepal) Initiative is a sub-regional cooperation framework that aims to promote connectivity, trade, and investment among the four countries. The BBIN Initiative is based on the principle of mutual benefit and seeks to create a more integrated and prosperous region.

The IWTTP is an integral part of the BBIN Initiative, as it supports the development of inland waterways as a mode of transport for trade and transit among the four countries. The BBIN Motor Vehicles Agreement (MVA), which was signed in 2015, aims to facilitate the cross-border movement of vehicles among the four countries. However, the MVA has faced some challenges in implementation due to concerns over environmental issues and sovereignty.

The IWTTP offers a more sustainable and environmentally friendly alternative to road transport for trade and transit within the BBIN region. Inland waterways have a lower carbon footprint than road transport and can also reduce traffic congestion and improve road safety. The IWTTP can also promote the development of regional tourism and cultural exchange.

Stakeholder Perspectives: A Multifaceted Approach

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The success of the IWTTP depends on the active participation and cooperation of various stakeholders, including the governments of India and Bangladesh, businesses, and local communities. Each stakeholder has its own set of interests and priorities, and it is important to address these concerns to ensure the effective implementation of the agreement.

  • India: India's primary interest in the IWTTP is to improve connectivity to its Northeastern states and enhance trade with Bangladesh. India also seeks to promote regional integration and counter Chinese influence in the region. India has invested significantly in infrastructure development related to the IWTTP and has actively engaged in negotiations with Bangladesh to address any outstanding issues.
  • Bangladesh: Bangladesh seeks to enhance trade and economic cooperation with India and to benefit from transit fees and infrastructure development. Bangladesh also recognizes the importance of regional connectivity in promoting economic growth and development. Bangladesh has facilitated transit routes and cooperated on infrastructure projects related to the IWTTP.
  • Tripura: Tripura seeks improved connectivity and reduced transportation costs. The state also wants to reduce its dependence on the Siliguri Corridor and to access markets and supplies more efficiently. Tripura has advocated for improved infrastructure and trade facilitation related to the IWTTP.
  • Businesses: Businesses in both India and Bangladesh stand to benefit from the IWTTP through reduced transportation costs, improved access to markets, and increased trade opportunities. Businesses have actively engaged in trade and investment activities related to the IWTTP.
  • Local Communities: Local communities along the inland waterways can benefit from increased economic activity and employment opportunities related to the IWTTP. However, it is important to address any concerns over environmental impacts and social disruption. Local communities have been involved in consultations and discussions related to the IWTTP.

Challenges and Opportunities

Despite its potential benefits, the IWTTP faces several challenges that need to be addressed to ensure its effective implementation. Some of the key challenges include:

  • Infrastructure Deficiencies: The inland waterways in the region are often poorly maintained and lack adequate infrastructure, such as navigation aids, terminals, and dredging facilities. This can hinder the smooth and efficient movement of goods.
  • Customs and Border Procedures: Customs and border procedures can be cumbersome and time-consuming, leading to delays and increased costs for traders.
  • Security Concerns: Security concerns, such as smuggling and illegal activities, can pose a threat to the safety and security of vessels and cargo.
  • Environmental Impacts: The use of inland waterways can have negative environmental impacts, such as water pollution, erosion, and disruption of aquatic ecosystems.
  • Political and Institutional Constraints: Political and institutional constraints, such as lack of coordination among government agencies and conflicting interests, can hinder the effective implementation of the IWTTP.

Despite these challenges, the IWTTP also presents significant opportunities for regional cooperation and development. Some of the key opportunities include:

  • Increased Trade and Investment: The IWTTP can facilitate increased trade and investment between India and Bangladesh, leading to economic growth and development in both countries.
  • Improved Connectivity: The IWTTP can improve connectivity to India's Northeastern states and enhance their access to markets and supplies.
  • Regional Integration: The IWTTP can promote regional integration and cooperation among the countries of South Asia.
  • Sustainable Development: The IWTTP can promote sustainable development by reducing reliance on road transport and promoting the use of environmentally friendly modes of transport.
  • Employment Generation: The IWTTP can generate employment opportunities in the transport, logistics, and related sectors.

The Role of the Land Ports Authority of India (LPAI)

The Land Ports Authority of India (LPAI) plays a crucial role in managing and developing integrated check posts along India's land borders, including the Akhaura Checkpost. The LPAI is a government agency responsible for developing and regulating land ports in India.

The LPAI's mandate includes:

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  • Developing and maintaining integrated check posts along India's land borders.
  • Providing customs, immigration, and other related services at land ports.
  • Facilitating trade and transit through land ports.
  • Promoting regional integration and cooperation.

The LPAI's powers include the authority to develop and regulate land ports, as well as to collect fees and charges for services provided. However, the LPAI's limitations include its focus on land ports and related infrastructure, as well as its dependence on other government agencies for certain functions, such as customs and immigration.

Legal Frameworks and Processes

The Indo-Bangladesh Inland Water Transit and Trade Protocol (IWTTP) serves as the primary legal framework governing the movement of goods between India and Bangladesh via inland waterways. Established in 1972 and subsequently revised in 2016, the protocol outlines the specific routes, procedures, and regulations necessary for facilitating trade and transit between the two nations. Its key provisions encompass allowing vessels from both countries to utilize designated routes for trade purposes and delineating the necessary procedures for customs clearance and other essential formalities. This protocol provides the legal foundation for the transportation of goods between India and Bangladesh via inland waterways.

The transit of goods, a fundamental process within the IWTTP, involves the movement of merchandise from one country to another through a third country. Typically, this process entails customs clearance, meticulous documentation, and strict adherence to transit regulations. However, under the IWTTP, this process is streamlined, with specific routes and procedures mutually agreed upon by India and Bangladesh, expediting the movement of goods and reducing bureaucratic hurdles.

Historical Precedents and Lessons Learned

Before the partition of India in 1947, waterways served as vital arteries for trade and transportation throughout the region. The IWTTP aims to revive these historical trade routes, recognizing their potential to enhance connectivity and promote economic growth. By drawing inspiration from the past, the IWTTP seeks to restore the role of inland waterways as a key mode of transport in the region.

Broader Implications: A Multifaceted Impact

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The Indo-Bangladesh Inland Water Transit and Trade Protocol (IWTTP) extends its influence far beyond mere trade facilitation, permeating various facets of bilateral relations and regional dynamics.

  • Political Ramifications: The IWTTP serves as a cornerstone in fortifying the bonds between India and Bangladesh, nurturing a spirit of collaboration and mutual understanding. By fostering economic interdependence, the protocol bolsters diplomatic ties and promotes stability in the region.
  • Diplomatic Significance: The IWTTP stands as a testament to the power of regional cooperation and trust-building. Its successful implementation demonstrates the commitment of both India and Bangladesh to fostering a conducive environment for trade and development, setting a positive example for other nations in the region.
  • Legal Repercussions: The IWTTP underscores the imperative of adhering to international agreements and protocols in the pursuit of shared objectives. Its legal framework provides a structured approach to cross-border trade, ensuring transparency and accountability in all transactions.
  • Security Considerations: By diversifying transportation routes and reducing reliance on vulnerable land corridors, the IWTTP enhances the security of supply chains and mitigates potential disruptions caused by geopolitical tensions or natural disasters. This diversification strengthens the resilience of both economies and safeguards against unforeseen contingencies.
  • Economic Catalysis: The IWTTP acts as a catalyst for economic growth by stimulating trade, reducing transportation costs, and fostering economic development in the region. Its implementation unlocks new opportunities for businesses, promotes investment, and creates employment, thereby contributing to the overall prosperity of both nations.

Connections and Context: Navigating the Broader Landscape

The Indo-Bangladesh Inland Water Transit and Trade Protocol (IWTTP) is intricately linked to several ongoing initiatives and historical contexts, shaping its significance and future trajectory.

  • Related Ongoing Issues: The IWTTP is closely intertwined with initiatives such as the BBIN (Bangladesh, Bhutan, India, Nepal) Initiative and connectivity projects in the Northeast, reflecting a broader commitment to regional integration and development. Furthermore, it aligns with India's Act East Policy, which seeks to strengthen ties with Southeast Asian nations through enhanced connectivity and trade.
  • Historical Connections: The IWTTP's roots can be traced back to the partition of India and its profound impact on regional connectivity, as well as the historical trade routes that once flourished in the Bengal region. By reviving these historical linkages, the IWTTP seeks to restore the region's economic vitality and promote closer ties between nations.
  • Future Outlook: Looking ahead, the IWTTP holds immense potential for further development, with expectations of increased trade volumes, enhanced regional connectivity, and the potential expansion of the protocol to include other countries in the region. As inland waterways continue to evolve as a viable mode of transport, the IWTTP is poised to play a pivotal role in shaping the future of regional trade and cooperation.

The Indo-Bangladesh Inland Water Transit and Trade Protocol: A Deep Dive into Regional Connectivity

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