INDIA BANGLADESH RELATIONS



Published on 08 Jan 2025

The people of India and Bangladesh share close and multi-faceted socio-cultural, religious and linguistic ties spanning centuries. The two countries share the same values of secularism, pluralism and democracy.

Why is Bangladesh important to India?

ü  Political

·       Strategic Stability: Bangladesh is vital for regional stability in South Asia.

·       Border Relations:  India shares a 4,096 km border with Bangladesh.

·       Counter-China Concerns: India and Bangladesh can jointly address concerns regarding China.

o   Example: Initiatives like OBOR can be countered.

ü  Security

·       Insurgent Activity Control: Bangladesh's cooperation helps curb insurgent activities along the border, enhancing India's Northeast security.

·       Connectivity and Trade: The border facilitates trade and connectivity, benefitting India's Northeastern states.

ü  Economic

·       Northeast Connectivity: Bangladesh provides a crucial land bridge to India's Northeast, ensuring uninterrupted connectivity.

·       Act East Policy: Bangladesh serves as a bridge to Southeast Asia under India's Act East Policy.

 

Areas of Cooperation

 

ü  Political

·       Multilateral Engagement: Both countries are committed to multilateralism and actively participate in regional organizations such as SAARC, BIMSTEC, and IORA.

o   Example: Bangladesh plays a significant role in India's Neighbourhood First policy, emphasizing the importance of regional cooperation.

·       Support for International Reforms: Bangladesh supports India's efforts to reform global institutions like the UN, WTO and IMF.

o   Example: The country also endorses India's aspiration for a seat in the United Nations Security Council (UNSC).

ü  Economic

·       Bilateral Trade: Bangladesh is the 6th largest trade partner of India.

o   Example: The Duty-Free and Quota-Free access provided by India under the South Asian Free Trade Area (SAFTA) since 2011 is appreciated by Bangladesh.

o   The India-Bangladesh Border Haat serves as a weekly border trade market, promoting commerce and acting as a reunion spot for families residing on both sides.

·       Special Economic Zones: Special Economic Zones have been established in Bangladesh to accommodate Indian manufacturing companies, enhancing economic cooperation.

·       Financial Support: India has extended significant lines of credit (LOCs) and grants to Bangladesh

o   Example:  Indian LOC and grants up to $8 billion aimed at addressing economic disparities and fostering development.

·       Infrastructure and Capacity building: India has significantly invested in Bangladesh's development.

o   Example: Exim Bank provides substantial loans, approximately $4.5 billion, for financing social and infrastructure projects in Bangladesh.

·       Indian Technical and Economic Cooperation: Capacity-building programs under the Indian Technical and Economic Cooperation initiative contribute to strengthening people-to-people interactions.

o   Example: India and Bangladesh have signed a Memorandum of Understanding (MoU) aimed at sustainable development in Sylhet.

·       Tourism: Bangladeshi tourists constitute one of the largest groups visiting India, facilitated by a more liberalized visa regime.

ü  Energy

·       Nuclear Power Collaboration: India is actively engaged in Bangladesh's nuclear power program

o   Example: India is assisting in the construction of the Rooppur nuclear power plant in collaboration with Russia.

o   India has been providing training to Bangladeshi nuclear scientists as part of this partnership.

·       Power Export: India is set to export electricity to address Bangladesh's energy deficit.

o   Example: Adani Power has inked a long-term pact with Bangladesh Power Development Board to supply electricity. Bangladesh signed an agreement to LPG to the Indian state of Tripura.

o   The India-Bangladesh Friendship Product Pipeline Project involves the construction of a 130-kilometre-long pipeline connecting Siliguri in West Bengal to Parbatipur Bangladesh, to supply refined diesel.

ü  Connectivity

·       Inland Waterways Trade: India and Bangladesh share 54 common rivers.

o   Example: The Ganga Waters Treaty was signed in 1996 for the sharing of waters of river Ganga during the lean season.

o   The Kushiyara Pact on the Kushiyara River was signed that will benefit people in Southern Assam and the Sylhet region in Bangladesh in 2022.

·       Transport: The Kolkata-Dhaka-Agartala Bus Service, launched in 2015, significantly reduced travel distances.

o   Example: The Maitree Express train service connects Dhaka in Bangladesh to Kolkata.

o   BBIN was signed to facilitate the movement of passenger and cargo vehicles across borders.

o   Agartala-Akhaura Rail-Link will be the first rail route between Northeast India and Bangladesh.

ü  Social

·       Cooperation in Health Sciences: Both countries have signed a MOU on health and medical sciences, including joint research and the exchange of doctors and health professionals.

·       COVID-19 Assistance: India has provided medical relief assistance to Bangladesh as part of its support to SAARC countries during the COVID-19 pandemic.

o   Example: Bangladesh was one of the highest recipients of vaccines from India.

·       Medical Tourism: Bangladesh accounts for over 35% of India's international medical patients, reflecting strong healthcare cooperation.

·       Scholarships and Skill Development: Bangladeshi students receive scholarships from the Indian Council for Cultural Research (ICCR) annually.

o   Example: India offers financial support to children of freedom fighters in Bangladesh through the 'Muktijodha scholarship' scheme.

ü  Defence

·       Joint Exercises: Regular joint army exercises, are conducted between the Indian and Bangladeshi armies.

o   Example: SAMPRITI

·       Border Security Collaboration: BSF and Border Guards Bangladesh (BGB) participated in the 'Mainamati Maitree Exercise' to enhance joint operational efficiency and border management.

o   Example: India has extended a line of credit worth US$500 million to Bangladesh for the purchase of defence equipment.

·       Surveillance and Equipment: MoU for the establishment of a Coastal Surveillance Radar System in Bangladesh was signed, enhancing coastal security.

o   Example: Bangladesh has extradited many "most wanted" criminals to India, strengthening security cooperation.

ü  Cultural

·       Shared Heritage: Both countries share the distinction of having their national anthems written by Rabindranath Tagore.

·       Cultural Centres:  Cultural collaborations to enhance soft power.

o   Example: The Prime Minister of both countries inaugurated Bangladesh Bhawan at Vishwa Bharti University in Santiniketan, West Bengal, which will house a museum and library, further enhancing cultural ties.



Challenges in India - Bangladesh Relations

✔     Political

●      Big Brother Attitude: Bangladesh sometimes views India as displaying a "big brother" attitude in the region, which can strain relations.

● Rohingya Crisis: Bangladesh has expressed dissatisfaction with India's handling of the Rohingya refugee crisis.



●      Water Sharing Disputes: Bangladesh has concerns regarding the equitable sharing of water from 54 transboundary rivers.

o   Example: Teesta River- Bangladesh is heavily dependent on the Teesta River, with 73% of its population relying on it for livelihood.

o   Example: Construction of the Farakka Barrage has reduced the availability of water for irrigation and industry in Bangladesh, leading to upstream-downstream issues.

 

✔     Security

●      Border Issues: The presence of illegal migrants along the India-Bangladesh border has led to changes in demography and ecological concerns in India's northeastern states.

●      Insurgency: The rise of insurgent groups like the Assam Gana Sangram Parishad in the border regions adds security challenges.

●      Smuggling: The smuggling of currency, drugs, medicines, and livestock across the border has been a persistent issue.

●      Border Shootings: 2020 witnessed the highest number of border shootings by the Border Security Force (BSF), adding tension to border relations.

✔     Economy

●      Trade Disputes: Bangladesh seeks India's cooperation in reducing non-tariff barriers to further facilitate trade.

o   Example: Non-tariff barriers may include stringent quality standards, sanitary and phytosanitary measures, and complex customs procedures.


China Factor: China’s deepening relations with Bangladesh is a matter of concern for India

✔     China is Bangladesh's largest trading partner making it heavily reliant on China.

✔     Bangladesh actively participates in the Belt and Road Initiative (BRI), a Chinese-led infrastructure and economic development project that India has not joined.

✔     Bangladesh is the second-largest recipient of Chinese loans in South Asia after Pakistan, with China committing US$28 billion in lines of credit for various infrastructure development projects.

✔     China is developing a 750-acre industrial park in Bangladesh, primarily for use by Chinese manufacturing firms. The park is located in the main port city of Chittagong.

✔     Both China and Bangladesh have plans to construct a 900 km highway connecting Chittagong and Kunming (Yunnan) through Myanmar. This highway project would enhance trade, people-to-people contact, and grant Bangladesh access to the Mekong sub-region.

✔     Bangladesh heavily relies on military hardware from China, a matter of concern for India.

✔     China has managed to maintain a consensus among political parties in Bangladesh through its 'apolitical' image.


Way Forward

✔     Water Sharing Challenges: India and Bangladesh must address water-sharing challenges collaboratively, focusing on negotiations to find solutions, such as the Teesta River dispute.

✔     Branding Assistance: India can enhance its diplomatic efforts by effectively branding its development assistance to Bangladesh, fostering a positive image among the Bangladeshi people.

✔     Institutionalized Security Cooperation: Both countries should institutionalize security cooperation to ensure its continuity beyond specific governments, promoting long-term stability and trust.

✔     Visa Regime Liberalization: Simplifying visa procedures can encourage tourism, business exchanges, and cultural interactions between India and Bangladesh.

✔     Investment in Bangladeshi Businesses: India can boost economic ties through trade delegations and participation in trade fairs, promoting bilateral trade and economic cooperation.

✔     India's Regional Influence: Amid competition from China, India should adapt its foreign policy to maintain and strengthen its influence in the South Asian region.

✔     Energy Security: In response to the growing global energy crisis, India and Bangladesh should cooperate on adopting clean and sustainable energy sources to achieve energy self-sufficiency in South Asia.

✔     Focus on Comprehensive Economic Partnership Agreement (CEPA): As Bangladesh transitions from an LDC to a developing country by 2026, the CEPA can help manage this shift while strengthening economic ties between India and Bangladesh.

✔     Addressing the Refugee Crisis: India and Bangladesh can lead efforts in SAARC to establish a declaration on refugees, outlining clear procedures for determining refugee status and handling economic migration issues.

 

India-Bangladesh relations have gained positive momentum over the last decade, with India remaining a key neighbour and strategic partner. Both nations should continue working together to deepen their cooperation.

Tags:
Polity

Keywords:
Bangladesh BIMSTEC SAARC Act East Policy Teesta

Syllabus:
General Studies Paper 2

Topics:
India and Its Neighbors