India-Bangladesh Relationship – Significance & Challenges – Explained Pointwise

The Evolution of India-Bangladesh relations over the years:

What recent political developments in Bangladesh have affected India-Bangladesh relations?

• Fall of the Sheikh Hasina Government: Student-led protests in 2024 led to Sheikh Hasina’s exit and the establishment of an interim government led by Muhammad Yunus. While Yunus has underscored “fair and balanced” relations with India, some of his remarks – like describing Northeast India as “landlocked” – sparked sensitivities.
• Attacks on minorities: The ethnic attacks on Bangla-speaking Hindus in Bangladesh have strained the India-Bangladesh relations.
• Resurfacing of security challenges: There are risks of emergence of security challenges by the anti-India groups as encountered during the earlier BNP-Jamaat years. With the continuing tensions on the border with Pakistan, Indian Army’s long standoff with the PLA in eastern Ladakh, has created a security-nightmare for India.
• Threat to India’s connectivity with the North-east: A further deterioration in India-Bangladesh has restricted India’s access to the Northeast. This region’s connection to mainland India will only remain through the narrow “Chicken’s Neck”. With the Myanmar border remaining extremely volatile, the source of unrest in India’s Northeast will increase.
• Jeopardized the Bilateral trade and FTA: Sheikh Hasina’s exit has jeopardized the growing bilateral trade ties between India and Bangladesh. There has also been stagnation of talks in the potential free trade agreement (FTA) between the two countries.
• Deterioration of people-people ties- There are real risk of blowback from the Bangladeshi people and the new power centres in Dhaka- some of whom will carry past grudges against India.
• Geopolitical challenges: Pakistan and China will see the political change in Bangladesh as an opportunity to challenge India’s presence in the country and try to tar it with a pro-Hasina brush.
• Recent Policy Shifts and Frictions:
  • Transshipment Facility Withdrawal: India revoked Bangladesh’s right to ship exports through Indian ports citing congestion; Dhaka saw it as damaging to trade competitiveness.
  • Extradition Tension: The interim government has sought Hasina’s extradition from India – causing diplomatic discomfort.
  • Minority Concerns: Reports of violence against Hindus post-regime change have worried New Delhi.
  • China’s Outreach: Beijing has stepped up diplomatic and infrastructure engagement, raising strategic concerns in India.
  • Summoning of Bangladesh High Commissioner: India recently summoned the Bangladesh High Commissioner in India over the deteriorating security environment in the country & the threats posed by the extremists elements to the security of the Indian mission in Dhaka.

What is the significance of Bangladesh for India?

What are the areas of Cooperation between India and Bangladesh?

1. Trade and Economic Cooperation:
   1. Duty-Free Access: Under the South Asian Free Trade Area (SAFTA), India granted duty-free and quota-free access to Bangladeshi products on almost all tariff lines (except alcohol and tobacco).
   2. CEPA Negotiations: Both nations are advancing towards a Comprehensive Economic Partnership Agreement (CEPA) to boost trade integration, reduce non-tariff barriers, and generate investment opportunities.
2. Connectivity and Infrastructure:
   1. Railway Grid: Five historic cross-border rail links have been operationalized (e.g. Petrapole–Benapole, Gede–Darshana, Radhikapur–Birol). The Akhaura-Agartala cross-border rail link directly connects India’s North-East to Bangladesh’s rail network.
   2. Port Access & Transit: Bangladesh permits Indian cargo to utilize its Chittagong and Mongla ports, drastically shortening transit times and logistics costs between mainland India and the North-Eastern states.
   3. Inland Waterways (PIWTT): Under the Protocol on Inland Waterways Trade and Transit, cargo vessels and passenger cruise lines operate through shared river systems.
   4. Bus Routes: Multiple operational bus routes link major hubs like Kolkata, Agartala, and Guwahati directly with Dhaka and Khulna.
3. Water and River Cooperation:
   1. Joint Rivers Commission (JRC): Established in 1972, the JRC manages 54 transboundary rivers, sharing hydrological data for flood forecasting during peak monsoon periods.
   2. Ganges Water Treaty (1996): Governs the sharing of Ganges river waters at the Farakka Barrage.
4. Security and Border Management:
   1. Joint Exercises: Regular military engagements include Exercise Sampriti (Army), BONGOSAGAR (Navy), and coordinated patrols along the maritime boundary.
   2. Border Management: Both nations work through the Border Security Force (BSF) and Border Guard Bangladesh (BGB) to prevent trans-border crimes, human trafficking, drug smuggling, and fake currency circulation.
   3. Land Boundary Agreement (LBA): The historic 2015 LBA resolved decades-old enclave disputes, enabling peaceful boundary demarcation.
5. Energy and Power Cooperation:
   1. Electricity Exports: India exports over 1,160 MW of electricity to the Bangladeshi grid via high-capacity cross-border interconnections.
   2. Maitree Super Thermal Power Plant: Jointly developed at Rampal (Bagerhat), this 1,320 MW coal-fired power project strengthens Bangladesh’s baseline grid capacity.
   3. Indo-Bangla Friendship Pipeline (IBFP): A 130 km high-speed diesel pipeline connects Siliguri in West Bengal to Parbatipur in Bangladesh, supplying energy directly into northern Bangladesh.
   4. Trilateral Energy Trade: India, Nepal, and Bangladesh executed a historic trilateral power transaction through the Indian grid to transmit Nepalese hydropower to Bangladesh.
6. Multilateral and Regional Cooperation: Both countries work closely in Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), Bangladesh, Bhutan, India, Nepal Initiative (BBIN), and South Asian Association for Regional Cooperation (SAARC) for trade, connectivity, and development. They also cooperate on climate change and disaster resilience through global forums like United Nations Framework Convention on Climate Change (UNFCCC) and Conference of Parties (COP) summits.
7. Cultural and People-to-People Ties: 
   1. Tourism and Education Cooperation: Bangladeshis form the largest group of tourists in India, with joint promotion of cultural and Buddhist tourism circuits. Student exchanges and scholarships have strengthened educational links.
   2. Health and Medical Cooperation: Bangladesh accounts for over 35% of India’s medical tourists, contributing more than 50% of medical tourism revenue. Partnerships include medical visa facilitation, hospital collaboration, and telemedicine services.
8. Counter-Terrorism and Intelligence Sharing: Bangladesh’s crackdown on anti-India insurgents under Sheikh Hasina boosted security cooperation. Both nations coordinate on intelligence sharing, counter-terrorism operations, and cybersecurity initiatives, ensuring regional stability.

What are the Challenges in India-Bangladesh Relations?

1. Political Realignment: Following the resignation and departure of Prime Minister Sheikh Hasina in August 2024, Bangladesh underwent a major political shift under an interim administration, leading to an elected government led by the Bangladesh Nationalist Party (BNP). This transition disrupted years of close ties built primarily with the Awami League, forcing India to recalibrate its diplomatic engagement across the Bangladeshi political spectrum.
2. Sharing of Transboundary River Waters: India and Bangladesh share 54 common rivers, but only two transboundary water-sharing treaties have been signed so far: the Ganga Waters Treaty and the Kushiyara River Treaty. A major point of contention remains the Teesta River dispute, with Bangladesh seeking equitable distribution of its waters, which has not been agreed upon by India and the state of West Bengal.
3. Deportation of Rohingyas: India and Bangladesh have mutual but sometimes conflicting interests regarding the deportation of Rohingyas to mainland Myanmar. India prioritizes deportation from its own territory first and then later facilitates deportation from Bangladesh to Myanmar.
4. Cross-Border Terrorism and Infiltration: Terrorism and infiltration across the Bangladesh border pose significant internal security threats to India. Activities like armed dacoity in border districts, fake currency transfer, cattle smuggling, and prostitution have also raised security concerns.
5. Stalled Economic Agreements: Progress on concluding a Comprehensive Economic Partnership Agreement (CEPA) and streamlining cross-border credit facilities has faced delays due to political shifts and renegotiation demands.
6. Drug Smuggling and Trafficking: According to the 2007 International Narcotics Control Board (INCB) report, India remains a prime transit route for heroin trafficking from South Asia to Europe through Bangladesh.
7. Growing Chinese Influence in Bangladesh: China’s deepening footprint in Bangladesh, including involvement in Teesta river management projects and port infrastructure, is viewed as a strategic challenge in India. Bangladesh is also an active partner in China’s Belt and Road Initiative (BRI). China has invested in 12 highways, 21 bridges, and 27 power and energy projects in Bangladesh. This growing involvement may undermine India’s regional standing and impede its strategic aspirations.
8. Rising Radicalization and Minority Persecution: The surge in religious extremism and mistreatment of minorities in Bangladesh poses threats to both internal stability and regional security, potentially destabilizing Bangladesh and affecting India’s security environment.
9. Sports and People-to-People Fallout: Political tensions have spilled over into sports, with Bangladesh earlier withdrawing from the 2025 Women’s ODI World Cup in India due to security concerns, while uncertainty also surrounds the proposed bilateral cricket series, reflecting strained diplomatic ties.

What Should be the Way Forward?

1. Broadening Political Engagement: India should establish robust, multi-partisan diplomacy in Dhaka, engaging across the entire spectrum of Bangladeshi political parties, civil society, and youth leaders rather than relying primarily on any single political party.
2. Timely Renewal of the Ganges Water Treaty (2026 Expiration): Prioritize the renegotiation and smooth extension of the 1996 Ganges Water Treaty before its expiration in December 2026, establishing a transparent, data-driven framework for dry-season water allocation.
3. Concluding the CEPA Negotiations: Fast-track the Comprehensive Economic Partnership Agreement (CEPA) to establish a stable trade framework as Bangladesh prepares to graduate from Least Developed Country (LDC) status.
4. Establishment of Joint Task Forces and Smart Border Management: Joint task forces comprising law enforcement agencies from both countries should be established to effectively combat cross-border drug smuggling, human trafficking, and illegal immigration.
5. Establishment of a Digital Connectivity Corridor: A digital connectivity corridor should be developed focusing on high-speed internet, digital services, and e-commerce to create new avenues for trade, collaboration, and technological exchange.
6. Strategic Balancing Against China: Counter China’s deepening footprint by offering credible, competitive alternatives in trade, connectivity, and finance. Leverage BIMSTEC, BBIN, and the Act East policy to structurally integrate Bangladesh with India’s Northeast and Southeast Asia, reducing Dhaka’s incentive to tilt toward Beijing.
7. Streamlining Visa & Medical Travel Services: Fully restore and digitize the visa issuance framework for Bangladeshi citizens traveling to India for healthcare, business, and higher education to rebuild grassroots goodwill.