India-Bangladesh Relations- Explained Pointwise

The close India-Bangladesh relations was again illustrated when PM Narendra Modi congratulated Ms. Hasina on her return to power in Bangladesh for a historic fourth straight term. Ms. Hasina’s party, the Awami League, secured two-thirds of the seats in the January 7, 2024 national elections. The win is significant for India, as Ms. Hasina is seen as one of India’s closest friends and allies & has fostered a friendly and mutually beneficial relationship between the two countries. However, concerns were raised about the lack of participation of the principal opposition Bangladesh Nationalist Party-Jamaat-e-Islami coalition.

What is the history of India-Bangladesh Relations?

India-Bangladesh relationship are civilisational, cultural, social and economic. The relationship is deep-rooted in history. However, the relationship also had its share of highs and lows.

What is the significance of India-Bangladesh Relations?

1. Geo-strategic- Bangladesh holds significant geostrategic importance for India as India’s eastern neighbour. Bangladesh provides India with access to the Bay of Bengal and an important route for trade and connectivity with Southeast Asia.

2. Geo-political- A stable and friendly Bangladesh is crucial for India’s security. Geo-political cooperation on issues such as counter-terrorism and border security is vital for maintaining peace in the South Asian region. Support of Bangladesh is crucial in India’s bid for UNSC permanent membership.

3. Economic- Bangladesh is a critical economy for India’s exports and bilateral trade. Deepening of India-Bangladesh economic relationship is crucial for India achieving its goal under the new foreign trade policy and of becoming a $5 trillion economy.

4. Cultural and civilisational- Bangladesh has large number of Hindu Bengali population and has large number of religious-cultural sites associated with India such as Ranir Bunglow Temple, Bhoj Vihara.

5. International cooperation- Active cooperation between India and Bangladesh is crucial to success of regional forums such as the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation), SAARC (South Asian Association for Regional Cooperation) and COPs to UNFCCC.

What are the areas of Cooperation between India and Bangladesh?

1. Political Cooperation- India and Bangladesh have maintained close political relationship among them, with frequent bilateral visits and close bonhomie between the heads of the government. For Ex-
a. Indian PM‘s visit to Bangladesh to take part in their golden Jubilee celebrations of Independence.
b. India has awarded Gandhi Peace Price 2020 to Bangladesh’s founding president Sheikh Mujibur Rahman.
c. Bangladesh’s PM Sheikh Hasina visit to India to take part in the G-20 summit.

2. Land Boundary Agreement (2015)- India and Bangladesh swapped the disputed islands and allowed the inhabitants to choose their country of residence. This solved a major long-standing dispute between India and Bangladesh.

3. Economic cooperation- Bangladesh has emerged as India’s largest trade partner in South Asia. India is the second-biggest trade partner of Bangladesh.
a. The bilateral trade between India-Bangladesh has reached $18 billion in 2021-2022 from $10.8 billion in 2020-21.
b. India and Bangladesh have also concluded a joint feasibility study on a Comprehensive Economic Partnership Agreement (CEPA) in 2022 to reduce or eliminate custom duties on traded goods.
c. India has provided duty-free quota access to Bangladesh on all tariff lines, except tobacco and alcohol, under South Asian Free Trade Area (SAFTA) since 2011.

4. Infrastructure Cooperation- India is a ‘major development partner‘ of Bangladesh, as India is funding several infrastructure and connectivity projects in Bangladesh.
a. India has extended Lines of Credits worth over $7 billion to Bangladesh since 2010.
b. Ahaura-Agartala rail link has been inaugurated that connects Bangladesh and the northeast through Tripura. The link has given India access to Chattogram and Mongla ports in Bangladesh for the movement of cargo. It is likely to boost small-scale industries and develop Assam and Tripura.
c. ‘Maitri Setu’ bridge which is a 1.9 km long bridge connecting Sabroom in India with Ramgarh in Bangladesh has been inaugurated.
d. Kolkata-Dhaka-Agartala Bus Service launched in 2015 has reduced the distance between Kolkata and Agartala from 1,650 km (through chicken’s neck or Siliguri corridor) to just 500 km.

5. Energy cooperation- Bangladesh imports nearly 2,000 megawatts of electricity from India. The India-Bangladesh Friendship Pipeline, connecting Siliguri in West Bengal and Parbatipur in Bangladesh, will transport one million Metric Tonnes Per Annum (MMTPA) of High-Speed Diesel to Bangladesh.

6. Defence Cooperation- India- Bangladesh border of 4096.7 km is the longest land boundary that India shares with any of its neighbours. India and Bangladesh conduct Joint Exercises like Exercise Sampriti (Army) and Exercise Bongosagar (Navy).

7. Tourism sector- Bangladeshis make up a large portion of tourists in India. In 2017, the number of tourists from Bangladesh outnumbered all the tourists arriving from Western Europe.

8. Medical Cooperation- Bangladesh accounts for more than 35% of India’s international medical patients and contributes to more than 50% of India’s revenue from medical tourism.

What are the areas of Tension in India-Bangladesh Relations?

1. Sharing of Transboundary River Waters- India and Bangladesh share 54 common rivers, but only two transboundary river water sharing treaties have been signed, so far- Ganga Waters Treaty and The Kushiyara River Treaty. For Ex- Major point of contention is the Teesta river water dispute. Bangladesh seeks equitable distribution of Teesta waters, which has not been agreed by India and its state of West Bengal.

2. Deportation of Rohingyas- India and Bangladesh have mutual but conflicting interests in deportation of Rohingyas to mainland Myanmar. India seeks to give primacy to deportation from its mainland first and then later facilitate deportation from Bangladesh to Myanmar.

3. Cross-Border terrorism and infiltration- Cross-border terrorism and infiltration through the Bangladesh border have raised additional threats to internal security of India. Armed Dacoity in border districts, fake money transfer, cattle smuggling and prostitution have also raised internal security concerns in India.

4. Drug Smuggling & Trafficking- According to 2007 International Narcotics Control Board (INCB) report, the drugs trafficking through India from Bangladesh, remains a prime transit point of trafficking heroin from South Asia to Europe.

5. Growing Chinese Influence in Bangladesh– Bangladesh is an active partner in the Belt and Road Initiative (BRI). China has made substantial investments in Bangladeshi infrastructure by building 12 highways, 21 bridges and 27 power and energy projects. China’s increasing involvement with Bangladesh potentially undermines India’s regional standing and impede its strategic aspirations.

6. Attacks on minorities across both the borders- The ethnic attacks on Bangla-speaking Hindus in Bangladesh and the attacks on Bangladeshi’s in India have strained the India-Bangladesh P2P and cultural relation.

What Should be the way forward for India-Bangladesh Relationship?

1. Early resolution of Transboundary river water Disputes- The early resolution of Teesta is the better way to boost India-Bangladesh relations by the formation of tripartite committee of India,Bangladesh and West Bengal.

2. Early conclusion of India-Bangladesh Free Trade Agreement (FTA)- Bangladesh is set to lose its Least Developed Country (LDC) status after 2026, thereby losing its duty-free and quota-free market access in India. Hence India finalise a Free Trade Agreement (FTA) with Bangladesh at the earliest. India must also ensure that the FTA is not misuded by China to dump goods in India through RCEP agreement (Bangladesh is also a member of RCEP agreement).

3. Establishment of Joint Task Forces and Smart Border Management- There is a need to establish joint task forces comprising law enforcement agencies from both countries to effectively combat cross-border drug smuggling, human trafficking and Illegal immigration.

4. Establishment Digital Connectivity Corridor- There is a need to establish a digital connectivity corridor between the two countries, focusing on high-speed internet connectivity, digital services, and e-commerce. This can create new avenues for trade, collaboration, and technological exchange.

5. Restoration of Global image of Bangladesh- India must help in restoring the global image of Bangladesh which has been facing U.S. Sanctions on account of ‘democratic backsliding‘ and ‘human rights violations‘. India must work closely with the law enforcement agencies of Bangladesh to reduce the ethnic attacks on Bangla speaking Hindus.

One of the prime interest is developing North-East India, better connectivity to South-East Asian Countries and exploring the Indo-Pacific region. To achieve that, deepening of India-Bangladesh relations is a significant step.