TRANSPORT INFRASTRUCTURE AND ECONOMIC PERFORMANCE OF BANGLADESH AND INDIAN BORDERING STATES

Linking infrastructure to growth outcomes, this article assesses how highway quality, rail reliability, and logistics services shape firm productivity in Bangladesh and in adjacent Indian states. Drawing on corridor case studies, it shows that uneven last-mile connectivity and congestion at border points inflate inventory costs and erode export competitiveness. It highlights complementarities between hard assets and “soft” systems— axle-load enforcement, weigh-in-motion, digital gate passes, and coordinated border management. The piece argues that incremental upgrades on high-traffic spines, combined with streamlined procedures and predictable service windows, generate substantial time savings. It also explains how infrastructure influences spatial equity by connecting border districts to urban markets and port gateways.

The body first summarizes empirical literature on transport costs and firm outcomes, then applies it to South Asian corridors. Section One benchmarks road roughness, travel speeds, and reliability on select Bangladesh routes and on Indian connectors to the border. Section Two explores rail’s role in bulk cargo and containers, identifying constraints in siding availability, gauge, and customs interface. Section Three models welfare impacts from reducing crossing times via pre-arrival processing, joint inspections, and 24/7 operations on pilot routes. Section Four weighs financing and governance options, including performance-based maintenance contracts and corridor authorities with stakeholder councils. Section Five discusses inclusion—how improved services affect small producers, women-led firms, and perishable supply chains. The conclusion recommends a sequenced program that prioritizes reliability, data transparency, and interoperable systems so that each dollar invested yields durable competitiveness gains.