INTRODUCTION
India and Bangladesh share a unique relationship rooted in history, geography, and culture. The partnership, which began with India’s crucial role in Bangladesh’s liberation in 1971, has grown into a multidimensional and strategic alliance. From trade and connectivity to security and water-sharing, the two nations have developed mechanisms for cooperation that underscore their interdependence. With shared borders stretching over 4,000 kilometers and overlapping cultural identities, their relationship significantly impacts the broader South Asian region.
BACKGROUND
The modern state
of Bangladesh came into existence in 1971 amid a unique set of circumstances.
The use of force by the regime in West Pakistan to suppress a popular Bengali
nationalist movement in East Pakistan resulted in a massive influx of refugees
to India. After nearly 10 months of brutal violence by the West Pakistani
forces, the Indian state eventually intervened militarily in early December,
following a pre-emptive attack by the Pakistani air force. The brief conflict
that ensued resulted in the creation of Bangladesh, as a secular state under a
new constitution. This tumultuous formative process had a profound impact on
state-to-state relations between India and Bangladesh.
BILATERAL RELATIONS
A new
phase of distancing between Bangladesh and India has been brought on by recent
changes in bilateral relationship along their shared border. Although India has
traditionally viewed Bangladesh as a significant ally in South Asia, its
current steps appear more severe, even punitive. Its displeasure with Dhaka's
political shift has been demonstrated by Delhi's employing a range of
strategies, including sudden trade restrictions, public demonstrations, and
heightened strategic posturing.
India appears to be unhappy about the collapse of the Awami League government and the emergence of an interim government led by Dr Muhammad Yunus, despite it being a domestic issue. Delhi now faces a less predictable opponent after years of supporting the previous government. Border pressure, a diplomatic freeze, and trade retaliation seem to be more reactive than proactive.
ECONOMIC RELATIONS
Over the last 15
years, under the AL government, there were significant achievements on the
economic and security front. The government’s pluralistic outlook helped strengthen
the relationship with India. Bangladesh is India’s biggest trade partner in the
subcontinent, and India is Bangladesh’s second biggest trade partner in Asia.
Total bilateral trade in FY 2023-24 stood at $14.01 billion, with India
importing $1.97 billion worth of goods from Bangladesh. Bangladesh is also
India’s 4th top export destination globally. However, the current ferment in
the country could hurt Indian exporters, with the shortage of foreign exchange
already affecting exports. Last year, Bangladesh had also become the 19th
country to sign a rupee trade settlement deal with India. India and Bangladesh
had also recently agreed to start negotiations on the Comprehensive Economic
Partnership Agreement soon, and operationalise two Special Economic Zones
(SEZs) in Mongla and Mirsharai. The two countries have also signed MoUs in 2023
to ease cross-border payment transactions.
The
power and energy sector has been another significant domain of cooperation. The
Maitree Super Thermal Power Plant has been supplying electricity to the
Bangladesh grid. The India-Bangladesh Friendship Pipeline between the two countries
for transporting diesel, and offshore oil exploration have been some other
avenues of economic cooperation. India provides 11650 MW of electricity to
Bangladesh. The Liquefied Petroleum Gas (LPG) terminal set up in Chittagong in
2016 helps not only Bangladesh but also India’s northeastern states.
India
has also extended Lines of Credit (LOC) to Bangladesh worth around $8 billion
for development of infrastructure. The 6th cross-border rail link between
Agartala in India and Akhaura in Bangladesh was inaugurated on 1st November
2023. The Haldibari (India) - Chilahati (Bangladesh) renovated rail link was
operationalised in 2021. Road and inland water connectivity has also seen
considerable activity. India has also operationalized the agreement for the usage
of Chittagong and Mongla Ports in 2023. All of this is important from trade
perspective as also for improving connectivity with India’s north east,
reducing dependence on the long, narrow, congested Siliguri Corridor.
PEOPLE-TO-PEOPLE TIES
There
exist deep historical, cultural, and religious ties between the people of the
two countries. In the past 15 years, there has been a steady increase in
Bangladeshi tourists visiting India. Visitors from Bangladesh make up around
23% of India’s total inbound tourists. Meanwhile, Indian visitors are critical
to Bangladesh’s tourism sector, accounting for just under half of all foreign
visitors to the country in 2023.
Tourism and medical treatment are the biggest reasons attracting Bangladeshis to India. The demand for Indian medical visas is the highest, through a highly liberalised process that has been extended uniquely to Bangladesh. India is the top destination for Bangladeshi citizens.
REGIONAL ALLIANCES
India and Bangladesh are part of regional
cooperative frameworks like SAARC, BIMSTEC, and BBIN, and IORA and play a
crucial role in their functioning. Together they promote collective security
and regional integration. Formed in 1985, the South Asian Association for
Regional Cooperation (SAARC) has come a long way. With both countries; joint
efforts, “GSAT-9,” also known as the SAARC Satellite, was launched in 2017 to
provide telecommunication, tele-education, and weather alerts services. They
have strongly supported endeavors like the South Asian Free Trade Area (SAFTA).
Bangladesh often plays a mediation role to lower tensions among member states
of SAARC.
AREA
OF
· Political Shifts
in Bangladesh : One of the most significant
factors influencing the future of India-Bangladesh relations will be the
political landscape in Bangladesh after Hasina. Her leadership has been largely
unchallenged, but the opposition, led by the Bangladesh Nationalist Party (BNP)
and other political forces, has often criticized her administration for its authoritarian
tendencies. If the opposition were to come to power, the tone of Bangladesh's
foreign policy, including its relationship with India, could shift. A change in
leadership may lead to a reevaluation of the priorities that have defined the
relationship over the last decade, especially if the new government favors a
more independent or less India-centric approach.
· Rise of Anti-India
Sentiment: Despite economic ties, public
perception has soured due to perceived Indian interference in Bangladesh’s
internal politics. In the months prior to Hasina’s exit, there was a rather
vociferous “India Out” campaign fuelled by opposition forces and social media
influencers in the country. Public protests, slogans like 'Delhi or Dhaka:
Dhaka, Dhaka,' and campaigns such as 'India Out' reflect deep-rooted mistrust.
·
Illegal Migration: Illegal immigration from Bangladesh continues to
strain India’s northeastern states, causing socio-economic and political
tensions. The Rohingya refugee crisis has further complicated the issue. Persistent
issues of cross-border terrorism, insurgency support, and trafficking remain
with Insurgent groups like United Liberation Front of Assam have reportedly
operated camps in Border regions.
· Water Sharing
Disputes– There are 54 rivers along the
borders of India and Bangladesh, and mainly the Teesta River has been an area
of concern. River water disputes have repercussions on agriculture and related
occupations. Bangladesh has put forward a demand to have 50% of the Teesta’s
water during December – March, which is a dry season in Bangladesh. West Bengal
has opposed this proposal as it is concerned that it will impact its water
requirement. The usage of the Ganga River is regulated by the Ganges Water
Treaty signed in 1996. This 30-year water-sharing agreement between both states
has till now proved successful but is badly affected by fluctuating flow of
water during scarcity seasons. At other times, silt and sand accumulate in the
riverbeds, leading to reduced water flow and navigation issues. India sometimes
fails to share upstream data, which makes it difficult for Bangladesh to
forecast flood levels and manage water assets efficiently. Bangladesh is also opposed
to India's plans to build the Tapaimukh Dam on the Barak River in Manipur and
to interlinking the rivers.
· Cross broder terrorism
and smuggling : Recently, Pakistan's ISI
has been looking for a stronghold in Bangladesh to further its plans to
destabilize India. Because of their vulnerabilities, Rohingyas can be a simple target
for the ISI in its efforts to radicalize innocent youth. Similarly, according
to media sources, even local Jamaat-e-Islami activists have been contacted by
ISI.
·TThe problem of drug trafficking is another major challenge for India Bangladesh relations. According to a 2007 report by the International Narcotics Control Board, Bangladesh is a key transit country for heroin being transported from South Asia to Europe. The INCB data lists drug trafficking through India as one of the popular methods. Cattle smuggling has become rampant in recent times. Border Security Force (BSF) of India and the Border Guard Bangladesh (BGB) often clash resulting in border killings at times.
Chinese Influence : Bangladesh's largest trading partner and primary source of imports are China. 97% of imports from Bangladesh are currently subject to zero duty in China. This concession came about as a result of China's duty-free and quota-free policy for Least Developed Countries.
Bangladesh receives the majority of its weapons from China. Bangladesh recently purchased two Chinese submarines and two frigates. Bangladesh’s biggest arm supplier is China. It has also invested over $7 billion in Bangladesh, and its exports to China in 2023 were over $22 billion. China has evinced interest in the Teesta river conservation project. China, the second largest provider of foreign aid for Bangladesh, has shown a lot of interest in developing the southern part of Bangladesh in terms of infrastructure, disaster and climate change resilience, and economic development of the southern deltaic region. It is, therefore, imperative from a geopolitical perspective for India to preserve and deepen its relationship with Bangladesh.
· Menace of Biased Reporting- Despite the strong ties; distortion of facts by the media creates confusion in both the countries. Sometimes, small conflicts are presented as major disputes, while other time, only one side of the event is covered. It influences the perception of masses at both the sides of borders and leads to lack of public trust. For example, on the issue of illegal migration, Bangladeshi media reports Indian response, as unnecessarily aggressive, while the Indian media exaggerates the scale of people illegally crossing the borders without mentioning the proper causes for the migration.
Current Status of INDO - BANGLADESH Relationship
The bilateral relationship of India and Bangladesh
stands at crossroads today. The anti-India elements are gaining ground, as
witnessed in attacks on Hindu temples in Bangladesh. Recently, India has backed
out from a trans-shipment facility that permitted exports from Bangladesh to
enter other countries through Indian borders.
The recent political developments in Bangladesh
threaten its social, political and economic stability. This is a cause of concern for
India because a stable and economically thriving Bangladesh has proved to be
its strongest ally in the immediate neighbourhood. Moreover, the strong
anti-India sentiment within some sections of the society and the political
class have further put a strain on India-Bangladesh relations. This hurts India’s
economic, security and geopolitical interests.
CONCLUSION
The
relationship between India and Bangladesh, shaped by decades of shared history,
cultural connections, and political complexities, has undergone significant
transformation under Sheikh Hasina’s leadership. Her tenure has been marked by
a focus on cooperation, peace-building, and strengthening bilateral ties across
key areas such as trade, security, and cultural diplomacy. The Land Boundary
Agreement (LBA), security collaborations, and robust economic exchanges are
just a few examples of the progress made under Hasina’s leadership, setting a
strong foundation for future diplomatic efforts.
However,
the post-Hasina era will present both challenges and opportunities for
India-Bangladesh relations. A potential shift in Bangladesh’s domestic
political landscape could lead to new diplomatic approaches, which may challenge
India’s influence in the region, especially as Bangladesh deepens its ties with
China. Border security concerns, geopolitical realignments, and water-sharing
disputes are likely to remain key issues in the years to come. Ultimately, the
future of India-Bangladesh relations will depend on both nations’ ability to
adapt to changing political dynamics while maintaining their long-standing
historical ties.

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