Beyond the Coastline: India’s Land Connectivity Options around the Bay of Bengal
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Under the ‘Neighbourhood First’ and ‘Act East’ policies, India’s regional connectivity strategy has predominantly focused on maritime domains, including new ports and shipping links. While this has helped deepen economic linkages between South Asia and Southeast Asia, inland connectivity initiatives have lagged, with persistent delays and obstacles affecting transportation infrastructure and economic integration beyond coastal areas around the Bay of Bengal. India’s Northeast region, which is yet to be effectively linked to the sub-region formed by Bangladesh, Bhutan, India, and Nepal, continues to lack any significant economic land bridge or corridor with Southeast Asia. For instance, the Bangladesh-China-India-Myanmar corridor has failed to materialise, and initiatives such as the Kaladan Multimodal Transit Transport Project or the India-Myanmar-Thailand Trilateral Highway remain bogged down by delays. While the rest of Asia’s hinterland economies are now rapidly connecting via rail, there is still no progress on a rail link between South and Southeast Asia.
This paper argues that India must prioritise the development of multimodal transportation infrastructure beyond coastal areas to bridge the current gap between maritime and land-based initiatives around the Bay of Bengal and spur the creation of sub-regional, regional, and inter-regional economic corridors. We assess the challenges and opportunities for policymakers to pursue the hard and soft dimensions of connectivity, which can accelerate the much-delayed regional integration in the Bay of Bengal hinterland. The hard transportation and logistics dimension includes four sectors: road linkages, rail connectivity, and both land and dry ports to facilitate mobility, including trade in goods. Beyond transportation infrastructure, on the softer side, there are five additional domains warranting attention: institutional capacity for coordinating connectivity initiatives between central and state levels; instruments to support cross-border stability and security; new international partnerships, especially with regional organisations and multilateral institutions; closer regional collaboration on infrastructure norms and standards; and increased engagement with the private sector.
Keywords: Land connectivity, Bay of Bengal, Southeast Asia, India, Indo-Pacific
Q&A with the authors
- What is the core message conveyed in your paper?
Our paper argues that India should prioritise the expansion of multimodal transportation infrastructure inland, extending beyond the coastal regions to address the disparities between maritime and land-based connectivity initiatives around the Bay of Bengal. This shift is essential to foster the development of sub-regional, regional, and inter-regional economic corridors, which can catalyse broader economic integration and growth.
Under the ‘Neighbourhood First’ and ‘Act East’ policies, India has primarily focused on enhancing maritime connectivity through substantial investments in ports and shipping routes, thereby bolstering economic ties between South Asia and Southeast Asia. However, inland transportation infrastructure development has lagged, facing persistent delays and challenges that impede full economic integration in the Bay of Bengal area. Notably, India’s Northeast Region (NER) is still largely disconnected, lacking effective land links with the sub-region that includes Bangladesh, Bhutan, India, and Nepal, and, by extension, Southeast Asia. Enhancing these inland connections could significantly alter the region’s economic landscape, promoting growth and development.
- What presents the biggest opportunity?
Developing multi-modal, overland connections in the Bay of Bengal region presents a significant opportunity to enhance the economic development of India’s NER. Our paper reviews various studies indicating that improved transport links between India and its eastern neighbours could significantly impact the NER’s development.
The enhancement of the NER is a key objective of India’s Act East Policy. In alignment with this, the Indian government is actively developing road and rail infrastructure, along with multi-modal land ports in the region. To further leverage this, the establishment of multi-modal logistics parks is essential to position the NER as a pivotal hub for land-based transport throughout the Bay of Bengal region. Moreover, implementing softer policy measures would aid in strengthening cross-border trade networks, thereby boosting economic opportunities and fostering growth in the NER.
- What is the biggest challenge?
One of the key challenges highlighted in our paper is that despite overland transport being the predominant mode of cross-border movement, it has not been prioritized in connectivity development. This issue manifests in various ways across roads, railways, land ports, and dry ports, including insufficient development of complementary infrastructure for cross-border movement, unclear cross-border movement protocols, limited private sector participation in both infrastructure development and operations, and the lack of mutual recognition of port facilities.
Our paper explores solutions to these challenges at both policy and operational levels, aiming to enhance both the physical infrastructure and the regulatory framework. Key strategies include improving inter-agency cooperation, enhancing coordination between the central and state governments, forging new regional and international partnerships, harmonizing regulatory norms and standards, and increasing private sector engagement. These measures are essential for overcoming the current limitations in cross-border overland transport connectivity.
Riya Sinha
Constantino Xavier
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