The South Asian countries have a shared past based on deep-rooted common cultural heritage and historical legacy. The region has demographic and geographical advantages young labour force and a contiguous border. The spatial dimension of regional integration of Northeast India and Bangladesh can be inferred from the historical fact that economic growth of Northeast during the British rule flourished essentially on the strength of its integrated transport network through East Bengal. Inland-water trade between India and Bangladesh is important in linking not only Assam but the region as a whole to Bangladesh. Cost effective trade routes through water ways is more important than land routes for India’s Northeast through the corridors of Bangladesh. Notwithstanding the importance of waterways, the land routes continue to be the safe transit for informal trade between both the countries.