Japan has proposed developing an industrial hub in Bangladesh, with supply chains to landlocked northeastern states in India and to Nepal and Bhutan beyond, by developing a port and transport in the region, officials said Tuesday.

The move comes after Prime Minister Fumio Kishida's visit to India last month, during which he touted the idea of a new industrial hub for the Bay of Bengal and northeast India that could bolster development in the impoverished region of 300 million people.

After Kishida's visit, the Japanese government approved $1.27 billion in funding to Bangladesh for three infrastructure projects including a new commercial port in the Matarbari area with links to adjacent landlocked Indian states, including Tripura, and wider international markets.