South Asia integration via the BBIN Corridor

Integrating South Asia through the BBIN Corridor

As India grows as a global force, strengthening regional integration in South Asia is essential. Keeping the neighborhood stable is a fundamental component of this rise. A key component of this objective is the integration of the area through the Bangladesh-Bhutan-India-Nepal (BBIN) Corridor, which reflects the Indian government's dedication to connection and collaboration with its neighbors.  

India's Framework for Foreign Policy

With programs like Neighbourhood First, Act East, and Act West, the National Democratic Alliance (NDA) administration is bringing a decade of consistency in foreign policy with it as it begins its third term in office. These initiatives seek to improve trade, transportation, and internet connectivity while strengthening interpersonal relationships with surrounding nations. The goal of the Neighbourhood First program is to establish strong ties in a number of areas while concentrating on collaboration within South Asia and the Middle East.

Regional Integration's Development
India has put more of an emphasis on improving transportation connections and enabling cross-border energy commerce in South Asia throughout the last ten years. Within this plan, the BBIN multimodal corridor is a key initiative. By connecting landlocked Nepal and Bhutan to ports in India and Bangladesh, this corridor seeks to improve trade, cross-border mobility, and people-to-people ties. It also aspires to establish interconnected energy grids for regional energy security.

The Geopolitical Rationale of the BBIN

  • Context of History
    The strained relationship between India and Pakistan has long impeded regional collaboration within South Asia, impeding the operation of the South Asian Association for Regional collaboration (SAARC). 2014 saw a shift in this dynamic as the NDA administration indicated that it was prepared to mend fences with Pakistan. But Pakistan's protests at the 18th SAARC summit in Nepal in 2014 prevented a motor vehicle agreement meant to improve connectivity from moving further. As a result, Bhutan, Bangladesh, India, and Nepal signed separate motor vehicle agreements in 2015, resulting in a sub-regional strategy. This was a watershed moment in Indian efforts to use sub-regional connectivity to promote greater collaboration across the region.

Integrating South Asia through the BBIN Corridor

  • Changes in Strategy
    India's strategic priorities now include dealing with China's increasing influence in the area rather than Pakistan. India now faces a threat from China's Belt and Road Initiative (BRI), which has greatly expanded its influence through political collaboration and infrastructure expenditures. India's strategic response to this problem includes the BBIN corridor, which aims to strengthen ties with its neighbors and offset China's influence.
  • India as a Gateway to the Region
    One prominent instance of India serving as a regional intermediary is the electricity trade agreement between Bangladesh and Nepal, whereby Bangladesh receives 40 megawatts of power from Nepal via the Indian power grid. This illustrates India's capacity to serve as a liaison between its neighbors, promoting collaboration and stability within the region. Positive externalities are anticipated from sub-regional projects like the BBIN corridor, which will establish the framework for sustained regional collaboration.

Chasms and Bends in the Transport Sector of the BBIN
For intraregional trade and regional integration to occur, transportation connectivity is essential. South Asia has seen severe transportation infrastructure deficiencies as a result of shaky regional security and political malice. India has responded to this by launching a number of cross-border transportation initiatives designed to strengthen people-to-people connections and trade.

Important Projects

  1. Bangladesh:
  • Five railway routes that connect different parts of Bangladesh to India through West Bengal have been constructed and funded by India.
  • Among these initiatives is the improvement of regional transportation infrastructure, which includes linking India and Bangladesh's Mongla Port.

    2Bhutan

  • India is currently constructing two railway routes (Banarsat-Jhambe and Kokrajhar-Gelupu) to link Bhutan with India and ultimately to the Mongla Port located in Bangladesh.
  • In order to do this, the Khulna rail terminal in Bangladesh must be connected to the port of Mongla and further integrated into the Indian rail system.

    3. Nepal

  • A 171-kilometer railway line from India to Nepal is being built. It will link to the current India-Nepal railway network.

Problems and Solutions
Rail connectivity has come a long way, but the corridor still needs work in other areas. The BBIN Motor Vehicle Agreement (MVA), which was supposed to control traffic in vehicles carrying passengers and freight, has been delayed. Due to infrastructure deficiencies and environmental concerns, Bhutan chose not to sign the agreement, even though it was first ratified by Bangladesh, India, and Nepal in 2022. Bhutan did, however, indicate that it was willing to close these gaps in March 2024.

The BBIN corridor needs to take a few steps in order to realize its full potential:

  • Implementing Holistic Policies: In order to enhance rail connectivity, prompt and well-coordinated policy action is needed.
  • Free Trade Agreements (FTAs): Improving intra-regional trade and reducing barriers require successful FTAs. Political squabbles and intricate tariff regimes have rendered the current South Asia Free Trade Area (SAFTA) ineffectual.
  • Road Infrastructure: Major upgrades are required to the road transport infrastructure in order to minimize detours and boost productivity at border checkpoints.

In summary
India is developing the BBIN corridor for strategic and commercial reasons. Improving regional integration is important for maintaining India's territorial integrity, particularly in disputed areas like Arunachal Pradesh, and for bolstering the country's ascent to prominence in the world stage. Partner nations stand to gain a great deal of infrastructure through the BBIN corridor, which will match India's growth trajectory. India needs to concentrate on comprehensive growth across areas like banking, energy, digitization, and social development in order to successfully challenge China's influence and carry out large-scale initiatives. To achieve these objectives, regional connectivity in South Asia must continue to gain speed.