1. Geographically, Bangladesh is positioned astride the Indian mainland and the North Eastern Region (NER). The strategic Siliguri corridor is the only land route, which connects both parts of India. Prior to the partition of India in 1947, most of the trade and movement of goods to and from this region took place through the area that is present Bangladesh. Chittagong port had served the needs of NER for a long. River, road and particularly railway communications developed during the British colonial period amply reflects this reality. In Indo-Bangladesh trade talks, “Transit” refers to the passage across Bangladesh territory of Indian goods to and from the North-Eastern States of India using Indian owned surface transportation, while “Transhipment” to the same movement using Bangladesh-owned means of transport.
2. Transit has direct relation with the much talked Asian Highway (AH) and Trans-Asian Railways (TAR). India strongly influenced the design and modification of both AH and TAR in order to connect her NER with the mainland and onward to the Southeast Asia. In today’s world, the trend of globalization has emphasized the need for increased international and regional co-operation in the development sectors, particularly in the fields of economy. This has also created a great demand on the development of transportation and communication infrastructure at the regional level. Transit to India will undeniably benefit Bangladesh economically and open up a wide opportunity for further regional economic cooperation. But, it will also bring enduring problems for the country especially in the field of security.
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3. Isolated NER. States in this region are land-locked, uneven and hilly. These states are also deprived of sea-vicinity. India has been looking for transit facilities through Bangladesh for quick communication to the NER. She also needs the port facilities of Chittagong and Mongla for the same purpose.
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