Global message from Bhutan King’s visit to Assam

The King of Bhutan, Jigme Khesar Namgyel Wangchuck, paying a visit to Inland Waterways Terminal (IWT) and the Multi Modal Logistics Park (MMLP) at Jogighopa, highlighted the growing attraction of Assam as a global business hub. It also demonstrates the importance of Assam and other Northeastern states in India’s Neighbourhood First policy in leveraging the natural advantage of the region, boosting bilateral and multilateral trade. The King of Bhutan also visited the Integrated Check Post currently being built at Gelephu on the Assam-Bhutan border, which signifies the infrastructural push to facilitate smooth movement of goods and passengers across the international border. The development of Gelephu International Airport as part of the proposed Gelephu Mindfulness City pushed by Bhutan has the potential to trigger a massive tourism inflow in Assam. Developing world-class infrastructure in the bordering Bodoland Territorial Region in the state, matching the aspirations of global investors and tourists which Gelephu seeks to attract, will be crucial to tap this potential. Exporters in Bhutan are keen to utilise the Brahmaputra waterway and Indo-Bangladesh Protocol Route to cut down the cost of their supplies to Bangladesh. The IWT at Jogighopa inaugurated earlier in February has been designated as an international port of call between Bhutan and Bangladesh and will serve as the only entry-exit point for exports and imports for Bhutan through waterways. The terminal is located just 91 km from Gelephu in Bhutan and 108 km from the India-Bangladesh border. In 2015, Bangladesh allowed the duty-free and quota-free import of stone and boulders from Bhutan for the construction of the Padma Bridge following the signing of the Preferential Trade Agreements between the two countries. Bangladesh allowed duty-free export of more than 30 different products, including stone chips and boulders. As Bangladesh is dependent on the import of stone chips and boulders from Bhutan for critical infrastructure projects, the Jogighopa IWT and MMLP will help Assam demonstrate the advantage of its national waterways and key logistics infrastructure in facilitating global trade and commerce and attract investors to develop the logistics and connectivity infrastructure. Cost-wise, a waterway is the most economical option for any large-volume export. While a normal ten-wheeled truck carries a load of 16 tonnes, an IWT vessel carries 2000 tonnes that is equivalent to 125 truckloads, which explains the economic advantage due to reduced operative costs. More vessels carrying Bhutanese export consignments plying along the Brahmaputra waterway and IBP route will also help maintain the waterway’s navigability. When bilateral trade between two countries takes place through a third country, a range of economic activities flourishes along the trade route, such as transportation and logistics services. As Bhutanese trucks will be carrying the export consignments to Jogighopa hotels and restaurants, warehousing and automobile repair services will also come to provide required services, which in turn will generate jobs and livelihoods. To top it all, smooth supply of export consignments between Bhutan and Bangladesh and other countries through Assam will shape the state’s image as a key logistics hub in South and Southeast Asia. India having a friendly regime in Bangladesh is critical to maintaining the navigability of the waterway, which is crucial for keeping Jogighopa functional. However, increasing bilateral trade between Bhutan and Bangladesh and growing dependence of Bangladesh on Bhutan for boulders for infrastructure development will prevent Bangladesh from refraining from any move that may hamper its trade with Bhutan through Assam. India pushing connectivity between National Waterway 1 (Ganga-Bhagirathi-Hooghly) and National Waterway 2 (Brahmaputra) via the IBP route in Bangladesh provides a win-win situation for both the neighbouring countries, which the ousted Sheikh Hasina regime acknowledged and reciprocated. The Chief Adviser of the interim Government of Bangladesh, Muhammad Yunus, met Bhutanese Prime Minister Dash Tsering Tobgay on the sidelines of the BIMSTEC meeting in Bangkok earlier this month and urged Bhutan to invest in his country, indicating the likely development of global trade in the subregion amidst growing tension between India and Bangladesh. For the next two years Bangladesh will be holding the chairmanship of BIMSTEC. The sub-regional initiative is a key multilateral initiative connecting two geographical regions – South Asia (India, Bangladesh, Bhutan, Nepal) and two key members of ASEAN – Myanmar and Thailand. With India making the northeast region central to the ‘Act East’ and ‘Neighbourhood First’ policy, global attention towards the region has been growing, and viewed in this context, the visit of the King of Bhutan to Jogighopa is expected to focus the attention of the world leaders on key infrastructure and connectivity development in Assam and other states in the region. The royal visit has highlighted the strategic importance of the region and that Muhammad Yunus’s comment to project the northeast region as landlocked in his economic pitch to China has no takers in the subregion. Assam leveraging the opportunities will help unlock the huge economic potential in bilateral and multilateral engagements in this strategic Asian subregion under India’s foreign policy initiatives.