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THE perception among the general public in the neighbouring countries about India is that it is a giant, which seldom tries to hide its size and clout. The bureaucrats in these countries have strong views about their Indian counterparts’ overbearing attitude towards them and their respective countries.

Unfortunately, little effort has been made from the Indian side, at the official level, to remove such misgivings, even though at various times the political leadership in India has tried to develop relations with the smaller neighbours in a manner that would give them the clear impression that they are being treated as sovereign nations deserving all the due respect and dignity that any nation, big or small, would normally get.

The antipathy comes out starkly in bilateral talks on economic relations, when discussing the nitty gritty of give and take of commercial agreements. India always seems to want more than it is willing to give. The insistence on getting its way is so persistent and forceful that the smaller partners are forced to give in. At least that is the impression that these talks leave behind on their conclusion.

The India-Sri Lanka bilateral Free Trade Agreement has no doubt helped Sri Lanka reduce its trade gap with India. But this pact is not only the result of some hard political bargaining, but also after Sri Lanka agreed to make a "negative list" the basis.

The porous border with Nepal gives free rein to smuggling, the extent of which can hardly be quantified. Nepal’s problems with India lie more on the political plane but, nevertheless, they are strong and have refused to disappear despite many upheavals in the ruling dispensation of that country. Interference in its internal affairs of the country is the common charge against India.

Bangladesh, which is one of the major eastern neighbours, has many holes to pick with India. It refused to entertain India’s plea that Bangladeshi nationals in their lakhs have illegally entered the country and trying to settle there, and that they would have to be deported. Bangladesh’s contention is that they are all Indian nationals and merely because they speak Bengali India trying to push them out to the neighbouring country where Bangali is the national language.

The other perennial problem is on the so-called intrusion by the security forces of one side or another now and then, which often takes serious proportions. The underlying feeling of antagonism and "no-trust" manifests itself with both sides slanging it out as often and as hard as they can.

However, it is on the commercial side that Bangladesh feels most deprived by India. Prime Minister Vajpayee’s promise during his visit to Dhaka in 1999, is quoted as the most glaring example of how even hopes raised by the declaration of the highest executive had been rendered bought by the bureaucrats.

Vajpayee had then pledged that India would allow duty-free entry of 25 categories of Bangladeshi goods reducing the yawning trade gap that Bangladesh is saddled with. But subsequent talks at the official level made no headway and the pledge remained unfulfilled "because Indian bureaucrats managed to scuttle the whole thing by raising numerous questions".

Bangladesh is said to be the eighth largest export destination for Indian goods and services. If one were to take into account the informal Enade it ranks third according to Machkund Dubey, a retired Foreign secretary and former Indian High Commissioner to Bangladesh. The "informal" trade is an euphemism for smuggled goods. And this taken together with official deficit, accounts for about $3 billion on trade account, according to various studies.

Bangladeshi analysts are of the view that Free Trade Agreement with India would only benefit India in asmuch as the informal exports of around $2.2 billion, would be official. Also, consumers in Bangladesh, who have been enjoying the benefit of cheap Chinese goods, would be forced to buy Indian goods because of tariff concessions making them competitive.

One Bangladeshi commentator says, "though under a free trade agreement Bangladeshi products will enjoy concessions in India, the imposition of non-tariff barriers cannot be ruled out because our hindsight experiences in this regard have shown that India is quite capable of departing from the spirit, if not the letter, of an agreement. Turning various clauses of the agreement in its favour by the Indian side is also possible in the form of tariff juggling".

The extent of mistrust that is prevalent is underlined further by the following comments: "Rights from liberalisation, India has been frequently playing such games whenever a government it does not like, or a government that adamantly defends the interests of Bangladesh, is in charge ... India had all along wanted a lot of concessions, including use of Chittagong port, transit facilities, supply of the electricity to "seven sisters" through Bangladesh ".

It is true that, among other things, India has been demanding transit facilities for its goods through Bangladesh, which would reduce the present transport costs which are enormous because of the need to skirt the border and take a long, circuitous route. Bangladesh, on the other hand, wants India to give transit facilities to ship its goods and services to Nepal and Bhutan. India says it is a multilateral issue and hence unacceptable.