UPSC International relation

India Bangladesh Relations In 2025 Key Developments And Future Outlook

April 25, 2025
5 min read
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India-Bangladesh relations in 2025 are marked by robust growth in trade, defense cooperation, and connectivity initiatives. Bangladesh stands as India's largest trade partner in South Asia and India is its second-largest in Asia. Key developments include joint military exercises like SAMPRITI and participation in multilateral platforms such as SAARC, BIMSTEC, BBIN, and IORA. Furthermore, enhanced connectivity is being fostered through the Protocol on Inland Waterways Trade and Transit (PIWTT) and operational agreements for using Chittagong and Mongla Ports. Recent developments also include Bangladesh’s participation in the Indo-Pacific Oceans Initiative and the completion of projects like the India-Bangladesh Friendship Pipeline and the Maitree Super Thermal Power Plant.

Introduction

The Evolving Dynamics of India-Bangladesh Relations: A Deep Dive into 2025 and Beyond

The year 2025 marks a significant juncture in the enduring relationship between India and Bangladesh, a relationship deeply rooted in shared history, cultural affinities, and intertwined strategic interests. The news snippet offers a snapshot of this dynamic, highlighting the robust growth in trade, the strengthening of defense cooperation, and the expansion of connectivity initiatives. These developments are not isolated events but rather the culmination of decades of diplomatic efforts, strategic planning, and a shared vision for regional prosperity and stability. To fully comprehend the significance of these developments, it is crucial to delve into the historical context, analyze the key actors and frameworks involved, and assess the broader implications for the region.

The Evolving Dynamics of India-Bangladesh Relations: A Deep Dive into 2025 and Beyond

A Shared History and the Genesis of a Bilateral Relationship

The foundation of the India-Bangladesh relationship is undeniably built upon the shared sacrifices and the profound bond forged during the 1971 Liberation War. India's decisive role in supporting Bangladesh's independence from Pakistan is a defining moment that continues to shape the two nations' interactions. The Indian Armed Forces, through Operation Searchlight, played a pivotal role in liberating Bangladesh, providing crucial military support, training, and logistical assistance to the Mukti Bahini, the Bangladeshi resistance movement. This act of solidarity, born out of humanitarian concern and strategic foresight, cemented a relationship of trust and mutual respect. The recognition of Bangladesh by India even before its formal independence underscored India's commitment to the cause of the Bengali people and laid the groundwork for a close and enduring partnership.

The immediate aftermath of the liberation war was marked by a period of intense cooperation, as India assisted in the reconstruction and rehabilitation of war-torn Bangladesh. India provided economic assistance, infrastructure development, and humanitarian aid, helping Bangladesh rebuild its economy and social fabric. Cultural and linguistic ties further strengthened this bond, as the two countries share a common heritage, literature, and artistic traditions. Bengali, the official language of Bangladesh, is also widely spoken in the Indian states of West Bengal, Tripura, and Assam, creating a linguistic bridge that facilitates communication and cultural exchange.

However, the relationship has not been without its complexities. The assassination of Sheikh Mujibur Rahman, the founding father of Bangladesh, in 1975, led to a period of political instability and strained relations with India. Subsequent military coups and changes in government brought about shifts in foreign policy, impacting the dynamics between the two countries. Nevertheless, the fundamental ties of history, geography, and cultural affinity have ensured that the relationship has remained resilient, evolving over time to address new challenges and opportunities.

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Key Actors and Their Strategic Interests

The bilateral relationship between India and Bangladesh is driven by the strategic interests and priorities of both nations. India, as a major regional power, views Bangladesh as a crucial partner in its "Neighborhood First" policy, which emphasizes strengthening ties with its immediate neighbors. India's strategic interests in Bangladesh are multifaceted, encompassing economic, security, and geopolitical considerations. Economically, Bangladesh offers a significant market for Indian goods and services, and the country's strategic location provides access to Southeast Asia. India seeks to enhance trade and investment with Bangladesh, diversify its supply chains, and promote regional economic integration.

From a security perspective, India is concerned about maintaining stability in the region and countering threats such as terrorism, cross-border crime, and illegal migration. India and Bangladesh share a long and porous border, making border management and security cooperation crucial. India seeks to collaborate with Bangladesh to address these challenges through joint patrols, intelligence sharing, and coordinated border management strategies. Furthermore, India views Bangladesh as a vital partner in its efforts to counter China's growing influence in the region. By strengthening its ties with Bangladesh, India aims to balance China's presence and promote a more multipolar regional order.

Bangladesh, on the other hand, is keen to leverage its strategic location and historical ties with India to accelerate its economic development and enhance its security. Bangladesh seeks greater access to the Indian market, investments in its infrastructure, and cooperation in tackling climate change and other shared challenges. Economic growth is a primary driver of Bangladesh's foreign policy, and the country sees India as a key partner in achieving its development goals. Bangladesh also recognizes the importance of maintaining good relations with India to ensure regional stability and protect its sovereignty. Bangladesh's participation in regional initiatives such as BIMSTEC and BBIN demonstrates its commitment to regional cooperation and its desire to strengthen its economic and security ties with India.

Key Actors and Their Strategic Interests

Trade, Investment, and Economic Cooperation: A Growing Partnership

Trade and economic cooperation form a cornerstone of the India-Bangladesh relationship. The news snippet highlights that Bangladesh is India's largest trade partner in South Asia, and India is its second-largest trade partner in Asia. This signifies the growing importance of bilateral trade and the potential for further expansion. The volume of trade between the two countries has witnessed a significant increase in recent years, driven by various factors, including preferential trade agreements, improved connectivity, and a shared commitment to economic integration.

The Protocol on Inland Waterways Trade and Transit (PIWTT) is a crucial mechanism for facilitating trade and transit between the two countries. This protocol allows for the use of inland waterways for trade, reducing transportation costs and time. The operationalization of the Chittagong and Mongla Ports for Indian trade further enhances connectivity and facilitates the movement of goods. These initiatives are part of a broader strategy to improve infrastructure and reduce barriers to trade, fostering economic growth and regional prosperity.

India's investments in Bangladesh are also on the rise, particularly in sectors such as infrastructure, energy, and manufacturing. The Maitree Super Thermal Power Plant, a coal-fired power plant built with Indian assistance, is a significant example of this investment. It enhances Bangladesh's energy security and strengthens economic ties. The India-Bangladesh Friendship Pipeline, designed to transport petroleum products, is another crucial project that will improve energy security and streamline the supply chain.

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However, there are challenges that need to be addressed to further enhance trade and investment. These include non-tariff barriers, infrastructure bottlenecks, and the need for greater harmonization of customs procedures. Both countries are actively working to address these issues through dialogue, policy reforms, and the implementation of various trade facilitation measures.

Trade, Investment, and Economic Cooperation: A Growing Partnership

Defense and Security Cooperation: A Foundation for Stability

Defense and security cooperation is an increasingly important aspect of the India-Bangladesh relationship. Joint military exercises, such as SAMPRITI, are a testament to the growing military-to-military ties between the two countries. These exercises provide opportunities for the armed forces of India and Bangladesh to train together, share best practices, and enhance interoperability. They also send a clear message of solidarity and commitment to regional stability.

India and Bangladesh also participate in multilateral naval exercises, such as MILAN, which bring together navies from various countries to enhance cooperation and address maritime security challenges. These exercises help build trust and confidence among participating nations and contribute to a more secure maritime environment.

Border management and security are crucial areas of cooperation, given the long and porous border shared by the two countries. India and Bangladesh have established mechanisms for joint patrols, intelligence sharing, and coordinated border management. They are also working to address issues such as cross-border crime, human trafficking, and illegal migration.

Counter-terrorism cooperation is another important aspect of the security partnership. Both countries face threats from terrorist groups and are committed to working together to combat terrorism and extremism. They share intelligence, coordinate law enforcement efforts, and participate in regional and international initiatives to counter terrorism.

Defense and Security Cooperation: A Foundation for Stability

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Multilateral Platforms and Regional Initiatives: Fostering Cooperation

India and Bangladesh are active participants in various regional and international forums, using these platforms to promote cooperation and address shared challenges. SAARC, BIMSTEC, BBIN, and IORA are key organizations that bring together India and Bangladesh, providing opportunities for dialogue, collaboration, and the implementation of joint projects.

SAARC, the South Asian Association for Regional Cooperation, aims to promote economic, social, and cultural cooperation among the countries of South Asia. India and Bangladesh are founding members of SAARC, and both countries have actively supported initiatives to enhance regional integration and address issues such as poverty, health, and education.

BIMSTEC, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, is a regional organization that focuses on economic cooperation and connectivity among countries in the Bay of Bengal region. India and Bangladesh are key members of BIMSTEC, and both countries are actively involved in initiatives to improve connectivity, promote trade, and enhance cooperation in various sectors.

BBIN, the Bangladesh, Bhutan, India, and Nepal initiative, is a sub-regional initiative that promotes cooperation on connectivity, trade, and transit among the four countries. The BBIN Motor Vehicles Agreement, for example, aims to facilitate the movement of vehicles across borders, reducing transportation costs and time. India and Bangladesh are committed to the success of BBIN and are actively working to implement various projects under this framework.

IORA, the Indian Ocean Rim Association, is a regional cooperation organization that promotes cooperation in the Indian Ocean region. India and Bangladesh are members of IORA, and both countries are actively involved in initiatives to promote trade, investment, maritime security, and sustainable development in the Indian Ocean region.

Bangladesh's participation in the Indo-Pacific Oceans Initiative (IPOI) is a recent development that underscores its commitment to regional cooperation and India's growing influence in the region. The IPOI is an India-led initiative that aims to promote cooperation in the Indo-Pacific region on various maritime issues, including maritime security, disaster management, and marine resources. Bangladesh's participation in the IPOI signals its willingness to engage in a broader regional framework and work with India and other partners to address shared challenges in the Indo-Pacific region.

Multilateral Platforms and Regional Initiatives: Fostering Cooperation

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Key Terms and Their Significance

Understanding the key terms and frameworks mentioned in the news snippet is crucial to fully grasp the dynamics of India-Bangladesh relations.

  • SAMPRITI: This joint military exercise between India and Bangladesh is a tangible demonstration of defense cooperation and strengthens military-to-military ties. It provides opportunities for the armed forces of both countries to train together, share best practices, and enhance interoperability. The frequency and scope of SAMPRITI exercises indicate the increasing importance of defense cooperation in the bilateral relationship.

  • MILAN: This multilateral naval exercise, in which both India and Bangladesh participate, enhances naval cooperation and interoperability among participating nations. MILAN provides a platform for navies from various countries to interact, share experiences, and address maritime security challenges. It contributes to a more secure and stable maritime environment in the region.

  • SAARC: As a regional intergovernmental organization, SAARC provides a platform for India and Bangladesh to cooperate on economic, social, and cultural issues. While SAARC has faced challenges in recent years, it remains an important forum for dialogue and cooperation. The organization's focus on regional integration and development aligns with the shared interests of India and Bangladesh.

  • BIMSTEC: This regional organization focuses on economic cooperation and connectivity among countries in the Bay of Bengal region. BIMSTEC is seen as a more dynamic and effective platform for regional cooperation than SAARC. India and Bangladesh are actively involved in BIMSTEC initiatives to improve connectivity, promote trade, and enhance cooperation in various sectors.

  • BBIN: This sub-regional initiative promotes cooperation on connectivity, trade, and transit among Bangladesh, Bhutan, India, and Nepal. BBIN is a concrete example of sub-regional cooperation, with a focus on infrastructure development and trade facilitation. The BBIN Motor Vehicles Agreement is a key initiative that aims to streamline the movement of vehicles across borders.

  • IORA: This regional cooperation organization promotes cooperation in the Indian Ocean region, including trade, investment, and maritime security. IORA provides a platform for India and Bangladesh to engage with other countries in the Indian Ocean region and address shared challenges such as climate change, piracy, and terrorism.

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  • PIWTT: The Protocol on Inland Waterways Trade and Transit facilitates trade and transit through inland waterways, reducing transportation costs and time. This protocol is a crucial component of the enhanced connectivity initiatives between India and Bangladesh. It allows for the use of inland waterways for trade, providing an alternative to road and rail transport.

  • Indo-Pacific Oceans Initiative: This India-led initiative aims to promote cooperation in the Indo-Pacific region on various maritime issues. Bangladesh's participation in the IPOI demonstrates its commitment to regional cooperation and India's growing influence in the region. The IPOI provides a framework for addressing shared challenges and promoting a more secure and stable maritime environment.

  • Maitree Super Thermal Power Plant: This coal-fired power plant, built in Bangladesh with Indian assistance, enhances energy security and strengthens economic ties. It is a symbol of the growing economic partnership between the two countries and contributes to Bangladesh's energy needs.

  • India-Bangladesh Friendship Pipeline: This pipeline to transport petroleum products enhances energy security and strengthens economic ties. It will streamline the supply chain and reduce transportation costs, further deepening the economic relationship.

Key Terms and Their Significance

Organizations and Legal Frameworks Shaping the Relationship

The India-Bangladesh relationship is shaped by various organizations and legal frameworks that provide the structure for cooperation.

The various regional organizations, as mentioned earlier, such as SAARC, BIMSTEC, BBIN, and IORA, provide platforms for dialogue, cooperation, and the implementation of joint projects. These organizations play a crucial role in fostering regional integration, promoting economic development, and addressing shared challenges.

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The Protocol on Inland Waterways Trade and Transit (PIWTT) is a key legal framework that facilitates trade and transit through inland waterways. This protocol defines routes, regulations, and procedures for trade and transit, making it easier and more cost-effective for goods to move between the two countries.

The operationalization of the Chittagong and Mongla Ports for Indian trade is another significant development. This involves agreements that allow India to use these ports for trade and transit, streamlining the movement of goods and reducing transportation costs.

These organizations and legal frameworks demonstrate the commitment of both countries to strengthening their relationship and promoting regional cooperation. They provide the necessary structures and mechanisms for implementing various initiatives and addressing shared challenges.

Organizations and Legal Frameworks Shaping the Relationship

Stakeholder Positions and Underlying Interests

Understanding the perspectives and interests of the key stakeholders is crucial to comprehending the dynamics of the India-Bangladesh relationship.

India:

  • Official Position: India seeks to strengthen ties with Bangladesh through trade, defense cooperation, and connectivity initiatives. India's "Neighborhood First" policy prioritizes building strong relationships with its neighbors, and Bangladesh is a key partner in this strategy.
  • Underlying Interests: India's underlying interests include strategic influence in South Asia, economic opportunities, and countering regional threats. India seeks to promote regional stability, enhance its economic ties with Bangladesh, and address security challenges such as terrorism and cross-border crime.
  • Actions Taken: India is investing in infrastructure projects, participating in joint military exercises, and engaging in diplomatic dialogue. India is also providing economic assistance and supporting various development initiatives in Bangladesh.

Bangladesh:

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  • Official Position: Bangladesh seeks to strengthen economic ties, enhance security cooperation, and improve connectivity with India. Bangladesh recognizes the importance of a strong relationship with India for its economic development and regional stability.
  • Underlying Interests: Bangladesh's underlying interests include economic growth, regional stability, and access to Indian markets and infrastructure. Bangladesh is keen to attract Indian investments, promote trade, and improve connectivity to support its economic growth.
  • Actions Taken: Bangladesh is participating in joint military exercises, joining regional initiatives, and supporting infrastructure projects. Bangladesh is also working to address outstanding issues with India, such as water sharing and border disputes.

The alignment of interests between India and Bangladesh is evident in the shared commitment to strengthening their relationship and promoting regional cooperation. Both countries recognize the mutual benefits of a strong partnership and are actively working to achieve their respective goals.

Stakeholder Positions and Underlying Interests

Broader Implications and Connections to Ongoing Issues

The developments in India-Bangladesh relations have broader implications for the region and beyond.

Political: Strengthened bilateral relations contribute to regional stability and India's influence in South Asia. A strong India-Bangladesh partnership can serve as a model for other countries in the region, promoting cooperation and economic integration.

Diplomatic: Enhanced diplomatic ties and cooperation on multilateral platforms are a significant outcome. India and Bangladesh are working together to address global challenges and promote a rules-based international order.

Economic: Increased trade, investment, and infrastructure development lead to economic growth for both countries. The strengthening of economic ties benefits both nations and contributes to regional prosperity.

Security: Increased defense cooperation and joint exercises improve security cooperation and regional stability. The two countries are working together to address security challenges and maintain peace and stability in the region.

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There are several ongoing issues that are closely connected to the dynamics of the India-Bangladesh relationship. These include:

  • Border management and security: Managing a long and porous border requires constant vigilance and cooperation. Both countries are working to enhance border security and address issues such as cross-border crime and illegal migration.
  • Water sharing disputes (e.g., Teesta River): Water sharing is a sensitive issue that requires a mutually acceptable solution. Negotiations are ongoing to resolve disputes over the Teesta River and other water resources.
  • Combating terrorism and cross-border crime: Both countries are committed to combating terrorism and cross-border crime, including human trafficking and drug smuggling.
  • Connectivity projects (e.g., railway links): Improving connectivity through railway links, roadways, and waterways is a key priority. These projects will facilitate trade, reduce transportation costs, and enhance regional integration.

Broader Implications and Connections to Ongoing Issues

Historical Connections and Future Outlook

The historical connections between India and Bangladesh, particularly the 1971 Liberation War and India's role, form the foundation of the strong bilateral relationship. The shared cultural and linguistic ties further strengthen the bond. This shared history and heritage provide a unique basis for cooperation and understanding.

The future outlook for India-Bangladesh relations is positive. Continued strengthening of bilateral ties through increased trade, defense cooperation, and infrastructure projects is expected. Further cooperation on regional platforms and addressing outstanding issues, such as water sharing and border disputes, will be critical. The relationship is poised to evolve further, with both countries working together to achieve their shared goals of economic prosperity, regional stability, and a secure future.

Historical Connections and Future Outlook

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