The growth of India-Bangladesh ties

• Recently, Prime Minister Sheikh Hasina secured a historic fourth straight term in Bangladesh.
• India considers Bangladesh a critical ally in the region, aligning with its 'Act East' policy to counter China's influence in the Indo-Pacific and foster a stable neighborhood.

Historical Foundation

• The relationship between India and Bangladesh is rooted in common history, heritage, and the 1971 Bangladesh Liberation War.
• India and Bangladesh's relationship began during the 1971 Bangladesh Liberation War when India supported Bangladesh's fight for independence.
• Ties soured in subsequent years due to various issues, but improved significantly when Sheikh Hasina came to power in 1996.

Positive Trajectory in Bilateral Ties

• Bilateral cooperation in trade, energy, infrastructure, connectivity, defence, security, and science has strengthened over the past 15 years.
• Positive steps include the land boundary agreement (LBA) in 2015 and the resolution of a maritime dispute over territorial waters.

Economic Cooperation

• Bilateral trade has steadily grown, with Bangladesh becoming India's largest trade partner in South Asia.
• Despite a dip in 2022-23 due to the pandemic and the Russia-Ukraine war, trade reached $18 billion in 2021-2022.
• Both nations concluded a joint feasibility study on a Comprehensive Economic Partnership Agreement (CEPA) in 2022, aiming to enhance economic collaboration.

Infrastructure Development and Connectivity

• India is a major development partner, funding infrastructure and connectivity projects in Bangladesh.
  • India has provided over $7 billion in Lines of Credit since 2010.
• Notable projects include the Akhaura-Agartala rail link and energy cooperation, with Bangladesh importing nearly 2,000 megawatts of electricity from India.
• Focus on regional connectivity and infrastructure projects like the Matarbari Port and the BIMSTEC Master Plan for Transport Connectivity.

Points of Tension

• The Teesta water-sharing dispute and the Rohingya issue remain unresolved and are likely to be key issues in the Hasina-led government's agenda.
• Cross-border terrorism, infiltration and human trafficking pose threats to internal security.

Global Relations

• Concerns over strained relations between Bangladesh and the US, including sanctions and criticism, pose challenges for India.
• Growing ties between Bangladesh and China, marked by Chinese investments, raise concerns for India, but Bangladesh assures India's strategic importance.