Concerns Over Bangladesh’s Mirsarai Economic Zone
The chairman of the Bangladesh Industrial Development Authority (BIDA), Asik Chowdhury, noted that the notion of an Indian economic zone in Mirsarai exists only on paper, amid ongoing tensions between Bangladesh and India.
Previously, the Bangladeshi Economic Zone Authority (BEZA) had expressed enthusiasm for Indian investments in this project, located in a town within the Chattgram district. In 2020, India committed $115 million through a third line of credit to develop infrastructure on 900 acres of land in the Bangabandhu Sheikh Mujib Industrial City.
“There seems to be some confusion regarding the Mirsarai economic zone,” Chowdhury said. “The original master plan proposed a massive 33,000-acre zone, but it was reduced to about 10,000-15,000 acres in Phase 1.” He emphasized that what is often referred to as the Indian economic zone is more of a theoretical concept than a reality. “The area outlined in the master plan primarily consists of forested land, and as of now, there’s been no concrete development or action taken.”
Chowdhury pointed out that since the interim government led by Muhammad Yunus took over last August, there has been a halt in project progress. “It feels like either a complete suspension or, at best, a postponed situation… The Chittagong port is not just a local port; it serves all of Bangladesh and is crucial for the entire South Asia region, including countries like Nepal and Bhutan,” he added.
The remarks come as relations between India and Bangladesh have soured since last year, particularly due to Bangladesh’s struggle to manage domestic violence against minorities, especially Hindus. The situation intensified after Dhaka sought closer ties with China in northeastern India earlier this year, prompting New Delhi to impose restrictions.
In March, Yunus described Dhaka as the “only guardian of the sea” in northeastern India, which led to a strong reaction from Indian leaders. A few weeks later, on April 9, India rescinded transport privileges for Bangladesh, limiting its ability to export goods to various regions, except Nepal and Bhutan.
By April 13, the scrutiny on Indian shipments entering Bangladesh had increased, while on May 17, India restricted imports from Bangladesh, like ready-made garments, in retaliation for Bangladesh’s limitations on Indian goods.
In response to Yunus’ comments, Assam’s Prime Minister Himanta Biswa Salma remarked, “We shouldn’t assume we can simply take control of the chicken’s neck,” referring to the narrow land corridor known as the Siliguri Corridor that connects northeastern India to the rest of the country. “While there’s one chicken neck, Bangladesh has two. If Bangladesh makes a move against it, they’re also putting their own access at risk,” Salma explained, alluding to the strategic importance of Chittagong port for Bangladesh.
Chittagong has faced challenges historically, and it’s evident that Bangladesh is highly reliant on its access to this port. In response, India has initiated plans to build a new four-lane highway linking Shillong in Meghalaya to Silchha in Assam, alongside the Kaladan multimodal transit transport project intended to connect Kolkata’s port to Sittwe in Myanmar’s Rakhine Province. This project aims to enhance connectivity through inland waterways, ultimately easing access to the ocean for northeastern regions.
