This Policy Brief examines the challenges and prospects related to sub-regional trade and transit involving India, Nepal, and Bangladesh. Eastern South Asia holds significant potential for economic cooperation and integration due to their geographic proximity and complementary resources. However, several obstacles hinder the realization of this potential.

 

The key challenges faced by the three nations in promoting trade and transit include inadequate infrastructure, bureaucratic complexities, negative perception of certain political parties of Nepal and Bangladesh on India, and poor regional connectivity. Despite these challenges, the region has immense opportunities for enhanced trade and transit cooperation between these countries. Furthermore, the study discusses the potential benefits of improving infrastructure, streamlining customs procedures, and harmonizing regulations to facilitate trade and transit within the sub-region.

 

By addressing the challenges and harnessing the prospects, India, Nepal, and Bangladesh can unlock the subregion's economic potential, promote regional stability, and contribute to their respective development agendas.