Bangladesh and India are exploring the possibility of establishment of 16 new border haats to increase the volume of trade between the two countries, according to Smita Pant, a senior diplomat in the Ministry of External Affairs. Pant made this announcement at a conference focused on connectivity between India’s Northeast and Bangladesh, organized by Asian Confluence, a think-tank.

According to Pant, the two countries have eight haats operational, which are located across a number of northeastern states like Tripura and Meghalaya. 

“A border haat is ‘a rough-and-ready market’ allowing ‘local people to trade in locally-grown agricultural and manufactured’ items along the border," explains Nazneen Ahmed in an article for the Observer Research Foundation, a New Delhi-based think tank.

The new border haats, whose establishment is currently under discussion, will be located in Mizoram and West Bengal. New border haats may increase market accessibility and economic prospects for border communities while lowering cross-border illicit trading.

These initiatives come even as both sides plan a slew of measures to improve the flow of trade.

To increase connectivity, India and Bangladesh have increased infrastructure projects, with Japan helping to subsidise some programmes. Additionally, it is anticipated that the opening of Bangladesh's Matabari Port by 2027 will make it simpler for commodities to go from India to Bangladesh and then on to Asian markets. In order to draw manufacturing to Bangladesh and India's Northeast, the three nations are collaborating on the "Bay of Bengal Northeast Industrial Value Chain Concept."

New Delhi and Dhaka are also negotiating a comprehensive economic agreement.

According to a joint statement from the meeting between Prime Ministers Narendra Modi and Sheikh Hasina in India in September 2022, “The two Leaders welcomed the recent finalization of a Joint Feasibility Study which recommended that Comprehensive Economic Partnership Agreement (CEPA) will be beneficial for both countries. They directed trade officials on both sides to start negotiations within the calendar year 2022 and to complete these at the earliest, in time for Bangladesh’s final graduation from LDC status".

“Reiterating the importance of facilitating trade between the two countries, they stressed the urgent need for up-gradation of infrastructure and facilities at the Land Customs Stations/Land Ports, and for removal of port restrictions and other non-tariff barriers at identified Land Custom Station," reads a joint statement from the visit.

For its part, India has requested “at least one major land port without port restrictions or negative list of restrictions, on the border with the North Eastern States of India, for easier market access, starting with ICP Agartala-Akhaura," the joint statement further stated.

Additionally, India has provided Bangladesh unrestricted access to its ports of entry, airports, and seaports in order to export commodities to other nations. Bangladesh had also asked for transit rail connectivity at the intersection of Chilahati and Haldibari.

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