World Bank project to link India’s Mizoram with Bangladesh, Myanmar
The World Bank will lend $107 million to improve India’s hilly state of Mizoram’s road linkage with Bangladesh and Myanmar to boost trade in the region.
India’s Northeastern state of Mizoram is sandwiched between Bangladesh and Myanmar, two countries with which the state shares a border of over 720 kilometres. The World Bank says that the Mizoram State Roads II – Regional Transport Connectivity Project is expected to improve transport connectivity of Mizoram which can help increase intra-regional trade and reduce trade costs significantly.
“Being strategically located between Myanmar and Bangladesh, a better connected Mizoram can open up huge trade potential for the entire Northeastern region of India with South and East Asian countries. These countries will be able to export and import goods cheaper and faster. Consumers will also benefit from better pricing and choices,” said Onno Ruhl, World Bank Country Director in India.
It is estimated that removing trade barriers could boost annual intra-regional trade in the India-Bangladesh-Myanmar region from the current levels of around $16 billion to $38 billion. Studies show that improving transport between India and Bangladesh could reduce trade costs by more than 20% in India, and12.5% in Bangladesh, says World Bank.
The loan agreement was signed by Nilaya Mitash, Joint Secretary, Department of Economic Affairs, Ministry of Finance, Government of India; Ranbir Singh, Resident Commissioner, Government of Mizoram; and Onno Ruhl, World Bank Country Director in India.
The project will be financed by a credit from the International Development Association (IDA) and will also help modernise Mizoram’s Public Works Department. The World Bank told The Dollar Business that the project supports road links that connect to the Trilateral Highway which will link India, Myanmar and Thailand in two years. "The World Bank Group is supporting the governments in simplifying procedures, optimising infrastructure designs and improving collaborative border management at border crossings to reduce transport time and improve trade outcomes between South Asia and East Asia," said a World Bank Spokesperson.
Mizoram has a high potential in power generation and the state’s climate and geography are conducive for horticulture, food processing and tourism sectors.
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