Yunus Proposes Economic Bloc with Nepal & Bhutan, Mentions India’s Northeast Again
K N Mishra
15/May/2025

What’s covered under the Article:
-
Muhammad Yunus proposes an integrated economic plan involving Bangladesh, Nepal, and Bhutan, again referencing India’s Northeast.
-
Yunus advocates cross-border projects in energy, healthcare, and infrastructure to boost regional cooperation.
-
His earlier comments in China about India’s Northeast being landlocked had triggered a sharp response from Indian experts.
Professor Muhammad Yunus, the Chief Adviser to the Bangladesh government, has reignited discussions on the economic potential of India’s northeastern states by advocating for a comprehensive regional economic integration plan that includes Nepal and Bhutan. His recent statements come amid ongoing geopolitical tensions in South Asia and follow his previous efforts to position Bangladesh as a crucial partner for regional trade, logistics, and manufacturing.
During a significant meeting in Dhaka with the deputy speaker of Nepal’s House of Representatives, Yunus highlighted the urgent need for cross-border collaboration in vital sectors such as hydropower, healthcare, and transport infrastructure. He articulated a vision for deeper regional ties through shared projects, specifically calling for an integrated economic plan covering Bangladesh, Nepal, Bhutan, and the Seven Sisters states of India’s Northeast.
The discussion placed special emphasis on hydropower cooperation. Bangladesh and Nepal have recently entered into a Tripartite Power Sales Agreement with India, enabling Bangladesh to import 40 megawatts of electricity through India’s grid. This agreement represents a concrete step towards energy integration in the region, showcasing the mutual benefits of regional power sharing.
Beyond energy, Yunus stressed Bangladesh’s commitment to regional healthcare collaboration. He announced plans for a 1,000-bed hospital in Rangpur, designed to serve patients from Nepal and Bhutan, thus promoting what he termed “regional health security and shared prosperity.” This move aims to strengthen healthcare access and capacity across national borders, fostering goodwill and economic resilience.
Yunus’s earlier statements on India’s Northeast shed light on his strategic framing of Bangladesh’s regional role. In a previous visit to China, he pointed out the geographical challenges faced by the Seven Sisters states — Assam, Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, and Tripura — as landlocked territories without direct ocean access. He positioned Bangladesh as the “guardian of the ocean,” emphasizing the country’s critical role as a gateway for trade and logistics for the region.
Addressing Chinese officials, Yunus encouraged greater economic collaboration, suggesting that China could invest in building infrastructure, manufacturing, and marketing through Bangladesh. He also pointed to Nepal and Bhutan’s hydropower resources as strategic assets that could be harnessed in partnership with Bangladesh to serve broader economic goals.
However, these remarks sparked controversy. Indian economist Sanjeev Sanyal, a member of the Prime Minister’s Economic Advisory Council, publicly questioned the significance of highlighting India’s internal geography to a Chinese audience. Sanyal expressed skepticism on social media, underscoring the sensitivity of invoking India’s northeastern states in the context of Chinese investments and regional politics.
Yunus’s calls for regional integration reflect broader ambitions to leverage South Asia’s diverse resources and foster economic development through cooperative frameworks. The proposal to include India’s Northeast, Nepal, Bhutan, and Bangladesh in a coordinated economic plan aims to address shared challenges such as limited market access, infrastructure deficits, and energy needs.
This integrated approach could potentially unlock new growth avenues by linking hydropower generation, transport corridors, and healthcare services across borders, benefiting millions in these regions. However, the political and diplomatic complexities of such initiatives remain significant, particularly given the sensitive geopolitical context involving India, Bangladesh, Nepal, Bhutan, and China.
Overall, Muhammad Yunus’s renewed advocacy for regional economic integration underscores Bangladesh’s aspiration to play a pivotal role in South Asia’s evolving economic landscape, while also highlighting the ongoing debates around regional cooperation and national sovereignty in this strategically important area.
The Upcoming IPOs in this week and coming weeks are Victory Electric Vehicles International, Borana Weaves, Dar Credit and Capital,Belrise Industries, Wagons Learning.
The Current active IPO are Accretion Pharmaceuticals, Integrity Infrabuild Developers.
Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.
Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.