Border Haats

India and the world Indo-Bangladesh

Published on: 09-Jan-16
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Border Haats

Government of India has approved an Memorandum of Understanding (MoU) between India and Bangladesh to set up border haats. The MoU was signed in October 2010.

The approval was also given to modify/revise the terms and condition of the MoU in consultation with relevant state governments/central government agencies and Government of Bangladesh.

Four border haats including - Kalaichar (Meghalaya- Bangladesh border); Balat (Meghalaya-Bangladesh border); Kamlasagar (Tripura-Bangladesh border) and Srinagar (Tripura- Bangladesh border) are already operational.

In addition, both the government agreed to further establish two border haats in Tripura and four in Meghalaya on the Bangladesh border.

Border Haats between India and Bangladesh:

Border haat means makeshift bazaar/ market at a certain point on zero lines of the India-Bangladesh borders allowing villagers of both the countries to market and shop each other’s products once a week.

Border haats are in high demand by people on both sides, living in remote enclaves and hilly areas, as they find it difficult to buy and sell products needed in day-to-day life.

The two nations started border trade in April 1972 – only months after Bangladesh became independent. However, it was cancelled a year later because of rampant smuggling along the 4,096 kilometers of border that the two countries share.

Analysis:

North East India has had strong cultural, linguistic and historical trade links with Bangladesh, Myanmar, China and other countries in South East and East Asia. There was a lot of inter-dependence amongst these regions in the past and trade was thriving from ancient times. But in last century, Cross border trade suffered due to new political boundaries and regimes. Now all countries wanted to re-establish people to people connectivity.

To achieve this, India is negotiating and signing various preferential trade agreements with its neighbours to increase people-to-people connectivity and more openness to cross-border trade.

Such initiatives like the initiation of Border Haats (local markets) along the India-Bangladesh border has also shown a lot of promise towards economic development of border communities, formalizing informal trade, building trust and higher trade openness.

But there are some problems faced by people in doing business in existing haats. Indian buyers expressed frustration over their Customs Department as they are often barred from buying Bangladeshi goods of their choice at the haat. Bangladeshi traders on the other hand remain frustrated with the small number of buyers from the Indian side.

Physical connectivity remains as the primary reason for slow growth in trade in the border haats. Physical infrastructure in terms of paved pathways and bridges/culverts is of utmost necessity to the proper functioning of the haats. If the existing border infrastructure were upgraded, the volume of trade and business between Bangladesh and the northeastern states of India would increase by five to six times of the current level.

The step to boost the country's trade with Bangladesh through setting up border haats has met limited success due to lack of proper attention by the two governments.

The Border haats will not only contribute in reducing trade deficit between Bangladesh and India, but also significantly help in promoting people to people that is vital for strengthening Bangladesh-India relations in the years to come.

By: Vishal

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