In light of the economic rise of Bangladesh, examine the opportunities for India and hope for South Asia. Discuss the associated challenges and suggest a way forward.
Bangladesh has surpassed India in terms of per capita GDP. This economic rise of Bangladesh poses new opportunities & hopes.
Reasons for economic rise of Bangladesh:
- Subsidies & concessions due to LDC status.
- Unique models of financial inclusion (Grameen Banks).
- A strong and labour intensive manufacturing sector, e.g. textiles, toys.
Opportunities for India in Bangladesh’s economic rise:
- Synergies wrt global value chains – India-Bangladesh can build on each other’s economic progress to better integrate with global value chains.
- A prosperous neighbourhood has positive effects – growth in tourism, increased demand of goods, electricity, etc.
- Reduced challenged of internal security for India – Migrant crisis, cross-border smuggling, insurgency, etc.
- Greater efficacy of regional trade blocs with India like SAARC, BIMSTEC. It will also increase voice in global arena.
Hope for South Asia:
- Regional trade – Increased prosperity in South Asia as it is least integrated regions of world.
- Increased concentration of prosperity – Shift of global balance of power towards Asia.
- Greater voice of South Asian region & its issues in global arena.
- Regional issues such as freedom of navigation in Indian Ocean region will seek prominence.
- Greater FDI inflows into Asia.
- Increasing closeness with china.
- India’s alleged “big brother” kind of attitude.
- Integrating with global value chains.
- Follow Panchsheel Principles while dealing with neighbours.
- Timely delivery of promised projects.
- Greater confidence building measures.
- Focus on strengths such as synergy in textiles, jut, etc.
Bangladesh’s rise is a step towards realization of Asian century & must be capitalized wisely.
|View All E-Books: Recent Release|