India-Bangladesh Relations, Developments & Issues

Syllabus: GS2/International Relation; India & Its Neighbours

Context

• Recently, on the sidelines of the BIMSTEC Summit in Bangkok, the Prime Minister of India and Bangladesh’s Chief Adviser held their first high-level talks since the regime change in Dhaka.

About India-Bangladesh Relations

Major Historical & Diplomatic Milestones
Year	Milestone	Description
1971	Liberation of Bangladesh	– India played a pivotal role in the Bangladesh Liberation War, leading to the creation of Bangladesh from East Pakistan. India recognized Bangladesh on December 6, 1971.
1972	Indo-Bangladesh Treaty of Friendship, Cooperation and Peace	– A 25-year treaty that laid the foundation for long-term cooperation.
1974	Indira-Mujib Accord (Land Boundary Agreement)	– An agreement to resolve border disputes. However, full ratification and implementation happened decades later.
1996	Ganges Water Sharing Treaty	– A 30-year water-sharing treaty signed for the Ganges at Farakka, ending a longstanding water dispute.
2010	Joint Communiqué	– Both countries agreed on enhanced cooperation in trade, security, and connectivity.
2011	Teesta River Agreement (Drafted)	– Though a draft was finalized, it remains unsigned due to political resistance in India.
2015	Land Boundary Agreement (LBA) Implemented	– The 1974 agreement was ratified and implemented, resolving the issue of enclaves and adverse possessions.
2017	Defence Cooperation Agreement	– India extended a $500 million Line of Credit for military hardware (significant step toward strategic partnership).
2021	50 Years of Diplomatic Relations	– India and Bangladesh celebrated 50 years of friendship and the birth centenary of Sheikh Mujibur Rahman, Bangladesh’s founding leader.
2022–2024	Rail and Water Connectivity Revival	– Initiatives such as the reopening of old rail links (e.g., Chilahati–Haldibari) and improved inland water trade have been revived.

Political and Strategic Cooperation

• There are nearly 70 ongoing bilateral institutional mechanisms between India and Bangladesh covering areas such as security, trade and commerce, power and energy, transport and connectivity, science and technology, defense, rivers, and maritime affairs.
• India has consistently supported Bangladesh’s infrastructure, security modernization, border management, and counter-terrorism.

Trade and Economic Partnership

• Bangladesh is India’s biggest trade partnerin South Asia and India is the second biggest trade partner of Bangladesh in Asia.
  • In FY 2023-24, the total bilateral trade has been reported as USD 14.01 billion.
  • Bangladesh exported USD 1.97 billion of goods to India in FY 2023-24.
• Key developments:
  • Duty-free access of Bangladeshi goods to Indian markets under SAFTA.
  • Development of border haats and integrated check posts (ICPs).
  • Investments in power, transport, and logistics.

Connectivity and Infrastructure

• Railway Connectivity: Agartala – Akhaura; Haldibari – Chilahati; Petrapole – Benapole; Gede – Darshana; Singhabad – Rohanpur; Radhikapur – Birol.
  • Railway trains operating between the two countries:
    • Maitri Express (connecting Kolkata and Dhaka);
    • Bandhan Express (connecting Kolkata and Khulna); and
    • Mitali Express (between New Jalpaiguri and Dhaka).
• Port Connectivity: Both countries have operationalized the Agreement for the usage of Chittagong and Mongla Ports in 2023. It allows India to avail the services of these ports in Bangladesh for transit cargo between Northeast and mainland India.
  • Development of inland waterway transport under the Protocol on Inland Water Transit and Trade (PIWTT).

Energy Cooperation

• Joint ventures like India-Bangladesh Friendship Pipeline (IBFPL) inaugurated in 2023 for diesel export from India to northern Bangladesh.
  • Collaboration on renewable energy (solar, hydro).

Cultural and People-to-People Ties

• Common linguistic and cultural bonds (particularly in West Bengal and Bangladesh) are reinforced through:
  • Cultural exchanges;
  • Celebrations like Maitree Diwas;
  • Academic and technical scholarships (e.g., ITEC);

Key Regional Groupings Common To India and Bangladesh – South Asian Association for Regional Cooperation (SAARC)BIMSTEC: – It aligns with India’s ‘Neighbourhood First’ and ‘Act East’ policies. – Bangladesh-Bhutan-India-Nepal Initiative (BBIN): 1. Currently India, Bangladesh, and Nepal are working together, as Bhutan has opted out of implementation. – Bangladesh-China-India-Myanmar Economic Corridor (BCIM): It is part of China’s BRI framework and was conceptualized to improve trade and connectivity between the four nations. 1. Bangladesh has supported the corridor but is mindful of India’s reservations. – Indian Ocean Rim Association (IORA): Focus on maritime security, blue economy, disaster risk management, and trade. – South Asia Subregional Economic Cooperation (SASEC): A program under the Asian Development Bank (ADB), SASEC includes India, Bangladesh, Nepal, Bhutan, Sri Lanka, Maldives, and Myanmar.

Key Concerns and Challenges

• Border Security: The porous 4,096.7 km border (the fifth-longest in the world) remains a hotspot for illegal crossings, smuggling, and trafficking.
  • Recent clashes between border guards have exacerbated tensions, highlighting the need for enhanced cooperation.
• Teesta River Dispute: It is a long-standing conflict over the fair sharing of the transboundary Teesta River’s water, with Bangladesh seeking a greater share than it currently receives.
  • Beyond the Teesta, over 54 rivers cross between the two countries. 
  • The Joint Rivers Commission has not met since 2010.
• China’s Growing Influence in Bangladesh: Bangladesh’s deepening ties with China, particularly in infrastructure and defense, is a strategic concern for India. India perceives this as a potential dilution of its strategic space.
• Cross-Border Migration and Demographic Shifts: Historical and undocumented migration from Bangladesh to Indian states like Assam and West Bengal remains a politically sensitive issue.
• Minority Rights: India has expressed concerns over the safety of minorities in Bangladesh, particularly the Hindu community.
  • Bangladesh’s interim government has emphasized its commitment to addressing these issues while asserting its sovereignty.
• NRC and Citizenship Amendment Act (CAA): India’s implementation of the NRC in Assam and the CAA has led to fears of a potential influx of Bengali-speaking Muslims into Bangladesh.
• Trade Imbalances and Non-Tariff Barriers: Bangladesh has long complained about non-tariff barriers imposed by India, and the slow progress in granting duty-free access to more Bangladeshi goods.

Way Forward

• Strengthening Dialogue: Regular high-level talks can foster mutual understanding and address contentious issues.
  • The implementation of the Coordinated Border Management Plan (CBMP) has led to enhanced patrolling and joint efforts to reduce friction along the border.
• Promoting Inclusivity: Both nations must prioritize the welfare of marginalized communities, ensuring their safety and inclusion in development efforts.  
• Diversifying Partnerships: Bangladesh can explore partnerships beyond India to assert its independence, while India can recalibrate its approach to avoid perceptions of favoritism.

Conclusion

• Bangladesh-India relations are at a critical juncture, requiring both nations to navigate complex challenges with diplomacy and pragmatism.
• By fostering dialogue, promoting inclusivity, and diversifying partnerships, they can pave the way for a stronger and more resilient bilateral relationship.

Source: TH