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India Bangladesh Relations

Contact Counsellor

India Bangladesh Relations

  • Recently, during the visit of the Bangladesh Prime Minister to India, the two countries agreed to begin a dialogue on a Comprehensive Economic Partnership Agreement (CEPA) to broaden economic ties.

ajor Outcomes of the Recent Meeting:

  • CEPA Initiation: India and Bangladesh agreed to start work on a CEPA to enhance economic ties and foster trade and investment.
  • Logistics and Trade Flow: India will support the construction of an inland container port in Sirajganj, Bangladesh.
  • Ganga Water Treaty Renewal: Both countries will initiate technical-level talks to renew the 1996 Ganga Water Treaty, focusing on flood management, early warning systems, and drinking water projects.
  • Maritime Cooperation Pact: Reflecting shared interests in the Indian Ocean and the Indo-Pacific region, this pact was signed, and Bangladesh’s decision to join the Indo-Pacific Oceans Initiative was welcomed by India.

Other Recent Developments in India-Bangladesh Cooperation:

  • India-Bangladesh Friendship Pipeline: Inaugurated to strengthen energy cooperation.
  • Pre-1965 Rail Links Rehabilitation: Several pre-1965 rail links between India and Bangladesh have been rehabilitated and are now operational.
  • Akhaura-Agartala Rail Link: Connecting Bangladesh and northeast India through Tripura, the sixth India-Bangladesh cross-border rail link.
  • BIMSTEC Master Plan for Transport Connectivity: Connects major transport projects in India, Bangladesh, Myanmar, and Thailand, establishing a shipping network.
  • Maitree Super Thermal Power Plant: Operationalisation to enhance energy cooperation.
  • Khulna-Mongla Port Cargo Facility: Facilitates cargo movement for India’s northeastern states.
  • Cultural Exchanges: Promoted through centers like the Indira Gandhi Cultural Centre.
  • ITEC Training and Scholarships: Bangladesh benefits from Indian Technical and Economic Cooperation (ITEC) training courses and scholarships for higher education in India.

Ties Between India and Bangladesh:

Historical Ties:

  • The relationship was solidified during the 1971 Bangladesh Liberation War, where India provided critical military and material support for Bangladesh's independence from Pakistan.
  • Relations deteriorated with the rise of military regimes and anti-India sentiments but stabilized in 1996 with a treaty on Ganga water sharing.

Economic Cooperation:

  • Bilateral trade has steadily grown over the past decade, with Bangladesh being India’s largest trade partner in South Asia and India being the second-largest trade partner of Bangladesh in Asia.
  • India is Bangladesh’s largest export destination in Asia, with around USD 2 billion of Bangladeshi exports to India in FY 2022-23.
  • Since 2010, India has extended Lines of Credit to Bangladesh worth over USD 7 billion.

Energy:

  • Bangladesh imports nearly 2,000 megawatts (MW) of electricity from India.
  • In 2018, Russia, Bangladesh, and India signed a memorandum on cooperation for the Rooppur Nuclear power plant project, Bangladesh’s first nuclear power reactor.

Prelims Takeaway

  • India Bangladesh Relations

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