Bangladesh and India have extensively discussed trade and connectivity at the bilateral level. However, despite its clear importance, the formalization of emergency supply security with defined terms is still pending, as reported by the ‘Eurasia Times’. The surge in global container freight rates and port backlogs from 2020 to 2022 highlighted Bangladesh’s unpreparedness for supply chain disruptions under normal trade policies.
Pharmaceutical raw materials and industrial inputs faced shortages and delays due to disrupted supply chains. The report emphasized the need for policy translation to address these issues effectively. Before the pandemic, Bangladesh annually imported active pharmaceutical ingredients worth millions from China and India. India’s role became crucial in supplying these ingredients when Chinese factories shut down, affecting global logistics.
Bangladesh’s dependence on pharmaceutical imports from India underscores the criticality of cross-border trade. Indian manufacturers swiftly resumed land deliveries to Bangladesh once restrictions eased, offering a more efficient supply chain compared to distant sea routes. The report highlighted the structural importance of active pharmaceutical ingredients for Bangladesh’s drug industry, with India emerging as a key supplier during crises.
The report also pointed out India’s potential to serve as an emergency diesel supplier for Bangladesh’s energy needs. Despite sporadic instances of diesel supply, a formal standing agreement between the two countries is yet to be established. India’s operational refineries and the Bangladesh–India Friendship Pipeline provide a feasible overland route for diesel supply during emergencies.
