ABSTRACT
This chapter looks at how the Kunming Initiative can be a building block for developing a credible economic relationship thereby bringing a win-win situation for both North-east India (NEI) and Bangladesh. It describes the state of India-Bangladesh trade, transport and other economic relations. The chapter highlights the factors that have handicapped the NEI-Bangladesh economic prospects. The literature concerning the subregional cooperation shows that economic complementarity, geographic proximity, political commitment, policy coordination and developed infrastructure are the key factors for the success of a growth triangle or a quadrangle. The Economic Survey of India reveals that Sikkim’s per capita state domestic product is lower than the national average. The economic relations between India and Bangladesh have not developed in tandem with their trade and economic engagements with the outer world. This is reflected by the fact that they trade low volume of goods and services between themselves.
