By: Meghna Dasgupta, Research Analyst, GSDN

The Bangladesh Bhutan India Nepal Initiative (BBIN) is a sub-divisional organisation that was established in 2015 with an aim of advancing transportation, trade and energy relationships between these countries. It is an initiative by South-Asian countries to enhance economic collaboration, and connectivity among its members. This collaboration aims to improve people to people ties, and enhance regional cooperation. Regional integration has been an evolving aspect in South-Asia. Efforts towards improving connectivity between the nations are being made to make the region more integrated.

India’s neighbourhood policy has thrived a lot over the past decade. India’s efforts at regional integration in the past were hampered by the India-Pakistan differences. These regional differences resulted in the unsuccessful performance of the South Asian Association for Regional Cooperation (SAARC). The arrival of NDA government to power in 2014 hinted towards cooperation attempts from the Indian side to tackle the issues plaguing their relationship. The member countries of the SAARC, proposed the formulation of the Motor Vehicle Agreement, at the 18^th SAARC summit. This agreement was devised to improve connectivity between the member states. When this proposal was rejected by Pakistan, some countries unlike previous experiences adopted a subregional approach by Bangladesh, Bhutan, India and Nepal to sign a separate agreement on Motor Vehicle Agreement for the Regulation of Passenger and Cargo Vehicular Traffic (MVA). Bhutan is however yet to ratify the agreement, because it is concerned about the potential environmental implications, and the infrastructural inefficiencies. In March 2024, Bhutan expressed the willingness to work towards filling the policy gaps, that prevented Bhutan from signing the BBIN MVA agreement initially.

India saw this transport corridor as an opportunity to utilise this to transform it to an economic corridor. The rationale behind this initiative was to enhance regional cooperation through connectivity, and it listed 30 priority transport connectivity projects. 

The BBIN initiative is being utilised to foster a network of safe, and economically efficient roadways that will address the connectivity concerns in the region, and will create an uninterrupted flow of cargo traffic and people. This initiative was launched with an aim to strengthen regional economic cooperation, and people-to-people ties, which had remained tethered in the past due to the conflicts among the SAARC nation states.

According to Australian Outlook, South Asia remains one of the least integrated regions in the world. The push towards regional integration, and cooperation between Bangladesh, Bhutan, India and Nepal was seen as a crucial step in navigating the connectivity, and transportation challenges in the post-pandemic world. It was crucial to improve the road and railway connectivity in India and Bangladesh with land locked Nepal and Bhutan. The BBIN initiative harmonises custom procedures, and improves border infrastructure. By facilitating trade between the neighbouring countries, BBIN hopes to reduce poverty by creating more employment opportunities, and in turn drive economic growth. The BBIN countries also aims to address concerns like energy shortages, reduce fossil fuel dependency, and contribute towards a more sustainable development. Development of cross border energy infrastructure, like transmission pipelines helps enhance energy cooperation. 

In the recent decades, Pakistan has gained a back seat in India’s strategic thinking. India is concerned about the growing Chinese presence in the region. Beijing has expanded its influence in both the Eastern and Western sectors. China’s Belt and Road initiative serves a way of accessing ports, investing in infrastructure, and increase its political and security presence and connection with the other countries. Other than regional cooperation, the BBIN aims to counter China’s growing influence. BBIN was a strategic initiative on India’s part, because China has border disputes with Bhutan, Nepal, and India and often likes to show its strength. BBIN serves as a mutual agreement between the four South-Asian countries to push back against China’s growing influence. 

The BBIN initiative is certainly ambitious, and has experienced its fair share of challenges. The varying political and administrative processes in the four countries can affect the seamless implementation of agreements. Difference in priorities and policy requirements often creates obstacles. Truck drivers often experience long delays at the border, resulting in an increase in the trade cost between the countries. This happens due to lack of proper infrastructure, administrative delays, restrictive policies, and inadequate logistics for cargo handling. These countries have a complex geography, which makes transportation more difficult. Thus, it is easier for them to trade with distant countries, than their neighbours. The World Bank Connecting to Thrive report has stated that it is about 15-20 percent cheaper for India to trade with Brazil or Germany, than with its neighbour Bangladesh. The BBIN agreement seeks to narrow this cost disparity, and enhance connectivity and regional autonomy. 

BBIN prioritises the objective of ‘connectivity’. In 2016 India approved the construction and upgradation of 558 kilometres of roads connecting Bangladesh, Bhutan and Nepal. This project that was valued at US$ 1.08 billion, received 50 percent of its funding from the Asian Development Bank. The Asian Development Bank has also funded the SASEC Road Connectivity Investment Programme to improve transportation efficiency and regional connectivity. The Trans-Asian Highway Project has tried to integrate the BBIN region, and create a network of highways across Asia.

The BBIN initiative also conducts workshops and training programmes to aid capacity building in transportation, customs, and border security. Efforts are being made to streamline the custom procedures, and make the entire process electronic, to make the entire process more seamless and efficient. These processes would facilitate a more un-ambiguous cross border movement. India and Bangladesh have been working together on expanding the number of protocols routes for in-land water transportation under the BBIN agreement. This allows smooth cargo movement between the two countries.

India is financing the development of the Mongla Port and has also financed the construction of five railway links that connects Bangladesh to India via West-Bengal. India is also building two railway corridors in Bhutan which will improve the oceanic connectivity for landlocked Bhutan by linking the Ghelepu region with the Mongla port in Bangladesh. From Akhaura, Indian rail lines will link the corridor to Kokrajhar, taking it to Gelephu.

In Nepal, India is building the 171-kilometre-long Kathmandu-Raxaul railway line, which will be further integrated into the Indian railway network through the existing India-Nepal railway lines through Kathmandu. Together, these projects can form a continuous transport corridor between Bangladesh, Bhutan, India and Nepal. Large scale investments have been made in the infrastructure of Nepal. Seamless connectivity has the potential to increase national income by 17 percent in Bangladesh.

While the agreement was signed in 2015, the its full implementation has faced delays. Bhutan’s hesitance to ratify the agreement has led to the creation of a sub-regional framework. Despite all the hurdles, the BBIN countries have conducted several trials to test the cargo vehicles movement, and the agreement protocols. This agreement has the potential to become a regional milestone once it becomes fully operational. It is a critical step towards regional integration, which could contribute to economic growth and development in South Asian. Regional integration will lead to the creation of more stable and united neighbourhood. Strong bilateral ties with its neighbours are crucial for India’s territorial integrity. A stable neighbourhood is essential for a rising power like India and the BBIN initiative serves as a deterrence to the growing dominance of China and promotes a multifaceted development.