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