ISAS South Asia Scan

Bangladesh has emerged as a regional gateway for South Asia and Southeast Asia and plays an important role in global supply chains. It is one of the most rapidly growing economies in Asia, with an average growth rate of about 6.5 per cent over the past few decades. The country’s next-door neighbours are two giants – India and China – which are emerging superpowers on the international stage. Both countries have their respective geopolitical interests in South Asia. Given the context, Bangladesh should maintain good working relations with India and China for its sustainable economic growth. At the same time, it should attract foreign direct investment from other markets integrating with the East Asian countries, as Dhaka has both geopolitical and economic advantages in the Asia Pacific region. Bangladesh should cultivate and use this unique position to its advantage through tactful involvement in trade and investment with both countries.

In this edition of the South Asia Scan, the author deliberates on how Bangladesh should balance between these two giants and capitalise on its trade and investment.