UPSC International relation

India Bangladesh Relations Strengthening Ties And Connectivity

April 29, 2025
5 min read
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India and Bangladesh are reinforcing their strong bilateral ties, particularly as the 50th anniversary of Bangladesh's liberation war approaches. India, an early supporter of Bangladesh's independence, has fostered robust trade relations, making Bangladesh its largest trading partner in South Asia. To address trade imbalances, India offers duty-free access to Bangladeshi products and is developing integrated check posts. Military cooperation is also growing, with joint exercises and Indian credit lines supporting Bangladesh's defense imports.

Connectivity is a key priority, with the restoration of pre-1965 rail links and commitment to the BBIN Motor Vehicles Agreement. Bangladesh is also allowing India to use its inland waterways for transshipment to its northeastern states. Efforts to resolve border disputes continue, and Bangladesh is a significant source of revenue for India's medical tourism sector. Recent virtual summits have emphasized border security cooperation, connectivity projects like the Haldibari-Chilahati rail link, and collaboration on water resources and energy projects. Projects like the Kaladan Multimodal Project and various bus services are further enhancing connectivity, and a bilateral pact now permits Indian cargo ships to use Bangladeshi ports, boosting intra-regional trade.

India-Bangladesh Relations: A Deep Dive into Strengthening Ties and Connectivity

The relationship between India and Bangladesh is multifaceted, steeped in history, and constantly evolving. It is a bond forged in the crucible of the 1971 Liberation War, where India played a pivotal role in the birth of Bangladesh. This shared history provides a unique foundation for a bilateral relationship that now spans trade, connectivity, security, and cultural exchange. Understanding the nuances of this relationship requires a comprehensive examination of its historical roots, present dynamics, and future potential.

India-Bangladesh Relations: A Deep Dive into Strengthening Ties and Connectivity

The Genesis of a Nation: India's Role in the Liberation War of 1971

The seeds of the modern relationship between India and Bangladesh were sown in the tumultuous events of 1971. What began as a struggle for cultural and linguistic identity for the Bengali-speaking population of East Pakistan quickly escalated into a full-blown war for independence. The Pakistani military's brutal crackdown on civilians, following the Awami League's victory in the 1970 elections, triggered a massive refugee crisis, with millions of Bengalis fleeing across the border into India.

India, under the leadership of Prime Minister Indira Gandhi, faced a complex dilemma. The humanitarian crisis was overwhelming, placing immense strain on India's resources. Moreover, the influx of refugees threatened to destabilize the region. However, there was also a strong moral imperative to support the Bengali people's struggle for self-determination.

After months of careful deliberation and strategic planning, India intervened militarily in December 1971. The Indian armed forces, in conjunction with the Mukti Bahini (the Bangladeshi liberation force), launched a swift and decisive offensive against the Pakistani military. Within weeks, the Pakistani forces surrendered, paving the way for the creation of an independent Bangladesh.

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India's support for Bangladesh's liberation was not without its costs. The war placed a significant burden on the Indian economy and resulted in casualties on both sides. However, it also cemented a bond of friendship and gratitude between the two nations that continues to endure to this day. India was among the first countries to recognize Bangladesh, and the relationship has since evolved into a comprehensive partnership encompassing various sectors.

The Genesis of a Nation: India's Role in the Liberation War of 1971

Economic Interdependence: Trade, Connectivity, and Investment

Economic cooperation forms a crucial pillar of the India-Bangladesh relationship. Over the years, trade between the two countries has witnessed remarkable growth, making Bangladesh one of India's largest trading partners in South Asia.

India has taken several steps to promote trade with Bangladesh, including offering duty-free access to a wide range of Bangladeshi products. This has helped to reduce the trade imbalance between the two countries, although it remains a point of discussion. To further facilitate trade, India is investing in the development of integrated check posts along the border, which will streamline customs procedures and reduce transit times.

Connectivity is another key area of focus. The two countries are working to restore pre-1965 rail links, which were disrupted during the Indo-Pakistani wars. The revival of these rail links will significantly improve connectivity and facilitate the movement of goods and people between the two countries. One notable example is the Haldibari-Chilahati rail link, which was recently restored after decades of disuse. This rail link connects India's West Bengal with Bangladesh's northern districts, providing a vital trade and transportation route.

The BBIN Motor Vehicles Agreement (MVA), involving Bangladesh, Bhutan, India, and Nepal, is another significant initiative aimed at enhancing regional connectivity. The MVA seeks to regulate passenger, personal, and cargo vehicular traffic among the four countries, thereby facilitating trade and transportation in the region. While Bhutan has expressed reservations about the agreement, India, Bangladesh, and Nepal are keen to move forward with its implementation.

India and Bangladesh are also exploring the potential of inland waterways to enhance connectivity. The Protocol on Inland Water Transit and Trade (PIWTT) allows inland vessels of one country to transit through specified routes of the other. This provides a cost-effective and environmentally friendly mode of transportation, particularly for goods destined for India's northeastern states. Bangladesh has allowed India to use its ports, including Chittagong and Mongla, for transshipment of goods to the northeast, further boosting connectivity.

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Beyond trade and connectivity, India is also a significant investor in Bangladesh. Indian companies have invested in various sectors, including textiles, pharmaceuticals, and infrastructure. These investments contribute to Bangladesh's economic development and create employment opportunities.

Economic Interdependence: Trade, Connectivity, and Investment

Security Cooperation: Addressing Shared Threats

Security cooperation is an increasingly important aspect of the India-Bangladesh relationship. The two countries face common security challenges, including terrorism, cross-border crime, and illegal immigration. To address these challenges, India and Bangladesh have established a robust framework for security cooperation.

Joint military exercises are a regular feature of the bilateral relationship. These exercises enhance interoperability between the armed forces of the two countries and help to build trust and understanding. India also provides training and equipment to the Bangladeshi military, including through lines of credit extended for defense imports.

Border management is another crucial area of cooperation. India and Bangladesh share a long and porous border, which is prone to illegal activities. The two countries are working together to strengthen border security through joint patrols, intelligence sharing, and the construction of border fencing. The Land Boundary Agreement (LBA) of 2015 was a landmark achievement in resolving long-pending border disputes between the two countries. The LBA involved the exchange of enclaves and the redrawing of boundaries to settle territorial claims. This agreement has fostered trust and cooperation between the two countries and has paved the way for more effective border management.

India and Bangladesh also cooperate on counter-terrorism efforts. The two countries share intelligence and coordinate their actions to prevent terrorist attacks. They are also working together to combat radicalization and extremism.

Water Resources: A Complex and Sensitive Issue

Water sharing is a complex and sensitive issue in the India-Bangladesh relationship. The two countries share 54 transboundary rivers, which are a vital source of water for agriculture, industry, and domestic consumption. However, the sharing of these waters has been a source of contention between the two countries for many years.

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The Ganges River is the most important transboundary river between India and Bangladesh. The construction of the Farakka Barrage in India in the 1970s has led to concerns in Bangladesh about reduced water flows during the dry season. The two countries have signed several agreements to address this issue, but a long-term solution remains elusive.

The Teesta River is another major transboundary river. The sharing of Teesta waters has been a contentious issue for many years, and a water-sharing agreement has yet to be finalized. The lack of an agreement has led to tensions between the two countries and has hampered cooperation on other issues.

India and Bangladesh are working to find a mutually acceptable solution to the water-sharing issue. They have established a Joint Rivers Commission to discuss and resolve water-related issues. The two countries are also exploring alternative approaches to water management, such as rainwater harvesting and water conservation.

Cultural Exchange: Strengthening People-to-People Ties

Cultural exchange plays an important role in strengthening people-to-people ties between India and Bangladesh. The two countries share a common cultural and linguistic heritage, which provides a strong foundation for cultural cooperation.

India and Bangladesh organize various cultural events and festivals to promote understanding and appreciation of each other's cultures. These events include music concerts, dance performances, film screenings, and art exhibitions. The two countries also exchange students, scholars, and artists to promote educational and cultural exchange.

Bangladesh is a significant source of revenue for India's medical tourism sector. Many Bangladeshis travel to India for medical treatment, seeking access to quality healthcare at affordable prices. This not only generates revenue for India but also strengthens people-to-people ties between the two countries.

Cultural Exchange: Strengthening People-to-People Ties

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The Rohingya Refugee Crisis: A Humanitarian Challenge

The Rohingya refugee crisis is a major humanitarian challenge facing the region. The Rohingya are a Muslim minority group from Myanmar's Rakhine State. They have faced decades of persecution and discrimination in Myanmar, leading to mass displacement and refugee flows.

In 2017, a large-scale military crackdown in Rakhine State forced hundreds of thousands of Rohingya to flee to Bangladesh. Bangladesh has provided refuge to these refugees, but the influx has placed immense strain on the country's resources.

India has provided humanitarian assistance to Bangladesh to help it cope with the Rohingya refugee crisis. India has also called for a peaceful and sustainable solution to the crisis, including the repatriation of the Rohingya refugees to Myanmar in a safe and dignified manner.

The Rohingya refugee crisis is a complex and challenging issue that requires a coordinated response from the international community. India and Bangladesh are working together to address this crisis and to find a lasting solution.

India's Act East Policy: Bangladesh as a Gateway to Southeast Asia

India's Act East Policy, launched in the early 1990s, aims to promote economic, strategic, and cultural relations with the Asia-Pacific region. Bangladesh plays a crucial role in India's Act East Policy, serving as a gateway to Southeast Asia.

Bangladesh's strategic location provides India with access to Southeast Asian markets and trade routes. By strengthening connectivity with Bangladesh, India can enhance its trade and investment ties with Southeast Asia.

The Kaladan Multimodal Transit Transport Project is a significant initiative aimed at enhancing connectivity between India and Southeast Asia. The project involves the development of a multimodal transport corridor connecting Kolkata in India with Sittwe in Myanmar, via Bangladesh. The project will provide India with an alternative route to access its northeastern states, bypassing the narrow Siliguri Corridor.

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Challenges and Opportunities in the India-Bangladesh Relationship

Despite the strong and growing relationship between India and Bangladesh, there are also some challenges that need to be addressed.

The water-sharing issue remains a major point of contention. A long-term solution to the sharing of transboundary river waters is essential for maintaining a stable and cooperative relationship. Border management is another challenge. Illegal immigration, cross-border crime, and smuggling continue to be problems along the India-Bangladesh border.

The rise of extremism and terrorism in the region poses a threat to both India and Bangladesh. The two countries need to strengthen their cooperation on counter-terrorism efforts to address this threat.

Despite these challenges, the India-Bangladesh relationship is full of opportunities. The two countries can further enhance their economic cooperation through increased trade, investment, and connectivity. They can also work together to address common challenges such as climate change, poverty, and food security.

Challenges and Opportunities in the India-Bangladesh Relationship

The Role of China: A Factor in the Regional Dynamic

China's growing influence in South Asia is a factor that both India and Bangladesh need to consider. China has been investing heavily in infrastructure projects in Bangladesh, and it has also emerged as a major trading partner.

India views China's growing presence in Bangladesh with some concern. India is wary of China's strategic ambitions in the region and its potential to undermine India's influence.

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Bangladesh, on the other hand, seeks to maintain a balanced relationship with both India and China. Bangladesh recognizes the importance of its relationship with India, but it also sees China as an important economic partner.

The dynamics between India, Bangladesh, and China are complex and evolving. It is important for all three countries to maintain open channels of communication and to work together to promote regional stability and prosperity.

The Future of India-Bangladesh Relations: A Vision for Deeper Integration

The India-Bangladesh relationship has come a long way since the liberation war of 1971. The two countries have built a strong and multifaceted partnership that encompasses trade, connectivity, security, and cultural exchange.

Looking ahead, there is potential for even deeper integration between India and Bangladesh. The two countries can work together to create a more prosperous and stable region.

Some key areas for future cooperation include:

  • Finalizing water-sharing agreements for all transboundary rivers.
  • Strengthening border management to combat illegal activities.
  • Enhancing connectivity through infrastructure development and improved transportation links.
  • Promoting cultural exchange and people-to-people ties.
  • Working together to address common challenges such as climate change, poverty, and food security.
  • Strengthening security cooperation to counter terrorism and extremism.

The India-Bangladesh relationship is a vital one for both countries and for the region as a whole. By working together, India and Bangladesh can create a brighter future for their people and for South Asia.

The Grant-in-aid initiative is another important tool used by India to support development projects in Bangladesh. Through this initiative, India provides financial assistance to Bangladesh for various projects, such as infrastructure development, education, and healthcare. These projects contribute to Bangladesh's economic and social development and foster goodwill between the two countries.

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The Line of Credit (LOC) extended by India to Bangladesh is a significant instrument for facilitating defense cooperation. This financial arrangement allows Bangladesh to procure defense equipment and technology from India. The LOC not only strengthens Bangladesh's defense capabilities but also promotes closer military ties between the two countries. It allows Bangladesh to diversify its sources of defense procurement and reduce its dependence on other countries.

The Governments of India and Bangladesh are the primary actors responsible for shaping and managing the bilateral relationship. These governments negotiate and implement agreements, initiatives, and projects aimed at strengthening cooperation across various sectors. They possess the legislative, executive, and administrative powers necessary to enact and enforce policies that promote bilateral ties. However, their actions are subject to domestic political constraints, international law, and diplomatic considerations. Public opinion, bureaucratic processes, and the need to balance competing interests can influence the decisions and actions of both governments.

The legal framework governing the India-Bangladesh relationship includes various treaties, agreements, and protocols covering a wide range of issues, from border management to trade and transit. The Land Boundary Agreement (LBA) of 2015 stands out as a particularly significant legal instrument. Its successful implementation demonstrates the commitment of both countries to resolving long-standing disputes through peaceful means and fostering trust and cooperation.

India's support for Bangladesh's liberation in 1971 serves as a historical precedent that continues to shape the bilateral relationship. This event underscores India's commitment to Bangladesh's sovereignty and development. It also highlights the shared values and historical ties that bind the two nations together.

From India's perspective, strengthening ties with Bangladesh is a strategic imperative. Bangladesh is a key partner in the region, and a stable and prosperous Bangladesh is in India's best interest. India's underlying interests include enhancing regional security, promoting trade and connectivity, and countering China's influence. To achieve these objectives, India has taken various actions, such as providing financial assistance, investing in connectivity projects, and engaging in security cooperation.

Bangladesh, on the other hand, seeks to deepen cooperation with India for its own economic development and regional stability. Access to Indian markets, securing investments, and enhancing security cooperation are among Bangladesh's key underlying interests. To further these interests, Bangladesh has facilitated trade and transit, participated in joint military exercises, and cooperated on border management.

The strengthening of India-Bangladesh relations has broader implications for the region. Politically, it enhances regional stability and cooperation. Diplomatically, it fosters trust and mutual understanding between the two countries. Legally, the resolution of border disputes sets a positive example for peaceful conflict resolution. Economically, increased trade and connectivity boost economic growth and development. Enhanced security cooperation helps address common threats like terrorism and cross-border crime.

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Several related ongoing issues continue to influence the India-Bangladesh relationship. Regional connectivity initiatives like BBIN and BIMSTEC provide opportunities for deeper integration. Water-sharing disputes over transboundary rivers remain a source of contention. The Rohingya refugee crisis and its impact on regional stability pose a significant challenge.

Looking to the future, the India-Bangladesh relationship is expected to continue to strengthen, with a focus on trade, connectivity, and security cooperation. There is potential for deeper integration through regional initiatives and the resolution of outstanding issues. The successful management of the relationship will require sustained political will, effective diplomacy, and a commitment to addressing the challenges and opportunities that lie ahead.

The Act East Policy, championed by India, is more than just a foreign policy initiative; it is a strategic vision that recognizes the pivotal role of Bangladesh in India's engagement with the broader Asia-Pacific region. By prioritizing closer ties with Bangladesh, India aims to unlock new avenues for trade, investment, and connectivity, thereby bolstering its economic and strategic presence in the region.

The Kaladan Multimodal Transit Transport Project, a collaborative endeavor involving India, Myanmar, and Bangladesh, exemplifies the potential of regional connectivity to drive economic growth and integration. This ambitious project seeks to establish a seamless transportation corridor linking Kolkata in India to Sittwe in Myanmar, utilizing waterways, roadways, and inland waterways through Bangladesh. Once completed, it will not only reduce transportation costs and transit times but also facilitate greater trade and investment flows between India and Southeast Asia.

Beyond its economic benefits, the Kaladan project holds significant strategic value for India. By providing an alternative route to access its landlocked northeastern states, it reduces India's dependence on the narrow Siliguri Corridor, also known as the "Chicken's Neck," which is vulnerable to disruptions. This enhanced connectivity strengthens India's strategic position in the region and allows it to project its influence more effectively.

The challenges and opportunities in the India-Bangladesh relationship are intertwined with broader regional dynamics. The rise of China as a major economic and strategic player in South Asia has introduced a new dimension to the bilateral relationship. While China's growing presence in Bangladesh presents economic opportunities, it also raises concerns about potential strategic implications for India.

India views China's increasing influence in Bangladesh with a degree of caution, particularly in light of the ongoing border disputes and strategic competition between the two countries. India is wary of China's efforts to expand its footprint in South Asia and its potential to undermine India's regional influence.

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Bangladesh, on the other hand, seeks to maintain a balanced relationship with both India and China, recognizing the importance of both countries for its economic development and strategic interests. Bangladesh welcomes Chinese investment and infrastructure projects but also remains committed to strengthening its ties with India.

The water-sharing issue remains a persistent challenge in the India-Bangladesh relationship, with the equitable distribution of transboundary river waters being a source of contention for decades. The lack of a comprehensive and mutually acceptable water-sharing agreement has not only hampered bilateral relations but also created economic and environmental challenges for both countries.

The Ganges River, a lifeline for millions of people in both India and Bangladesh, is at the heart of the water-sharing dispute. The construction of the Farakka Barrage in India in the 1970s has led to concerns in Bangladesh about reduced water flows during the dry season, impacting agriculture, fisheries, and livelihoods in the downstream areas.

The Teesta River, another major transboundary river, has also been a source of friction between the two countries. Despite numerous rounds of negotiations, a water-sharing agreement for the Teesta remains elusive, hindering cooperation on other fronts.

Finding a sustainable and equitable solution to the water-sharing issue is crucial for building trust and fostering closer cooperation between India and Bangladesh. This requires a willingness to compromise, innovative approaches to water management, and a commitment to addressing the legitimate concerns of both countries.

Beyond water sharing, effective border management is another critical challenge in the India-Bangladesh relationship. The long and porous border between the two countries is vulnerable to illegal immigration, smuggling, and cross-border crime, posing security and economic challenges for both nations.

Illegal immigration from Bangladesh to India has been a long-standing concern, with demographic and social implications for both countries. India has accused Bangladesh of failing to prevent illegal immigration, while Bangladesh has denied the allegations.

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Smuggling of goods, including drugs, weapons, and counterfeit products, across the border is another major challenge. These illicit activities not only undermine the economies of both countries but also fuel organized crime and corruption.

To address these challenges, India and Bangladesh have been working together to strengthen border security through joint patrols, fencing, and intelligence sharing. However, more needs to be done to enhance cooperation and coordination between the border security forces of both countries.

The rise of extremism and terrorism in the region poses a common threat to both India and Bangladesh. Terrorist groups operating in the region have been responsible for attacks in both countries, undermining security and stability.

India and Bangladesh have been cooperating on counter-terrorism efforts, sharing intelligence and coordinating their actions to prevent terrorist attacks. However, more needs to be done to address the root causes of extremism and radicalization, including poverty, inequality, and social exclusion.

The Rohingya refugee crisis, triggered by the mass displacement of Rohingya Muslims from Myanmar to Bangladesh, has presented a major humanitarian and security challenge for the region. The influx of hundreds of thousands of Rohingya refugees into Bangladesh has placed immense strain on the country's resources and infrastructure.

India has provided humanitarian assistance to Bangladesh to help it cope with the refugee crisis and has called for a peaceful and sustainable solution to the problem, including the safe and dignified repatriation of the Rohingya refugees to Myanmar.

The Rohingya refugee crisis underscores the need for greater regional cooperation to address humanitarian challenges and promote stability in the region.

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Despite these challenges, the India-Bangladesh relationship is full of opportunities for deeper cooperation and integration. By working together, the two countries can unlock new avenues for trade, investment, and connectivity, creating a more prosperous and stable region.

The potential for economic cooperation between India and Bangladesh is immense. With their complementary economies and strategic location, the two countries can leverage their strengths to boost trade, investment, and economic growth.

India is a major market for Bangladeshi products, particularly textiles, garments, and leather goods. Bangladesh, in turn, is a growing market for Indian goods, including machinery, chemicals, and pharmaceuticals.

By reducing trade barriers, streamlining customs procedures, and improving infrastructure, the two countries can significantly increase bilateral trade and investment flows.

Connectivity is another key area where India and Bangladesh can deepen their cooperation. By improving transportation links, including roads, railways, waterways, and airways, the two countries can facilitate the movement of goods, people, and ideas, fostering greater economic and cultural integration.

The BBIN Motor Vehicles Agreement, once fully implemented, will significantly enhance connectivity between India, Bangladesh, Bhutan, and Nepal, facilitating trade and transportation in the region.

The Kaladan Multimodal Transit Transport Project, when completed, will provide India with an alternative route to access its northeastern states, boosting trade and connectivity with Southeast Asia.

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Cultural exchange is another important area where India and Bangladesh can strengthen their ties. By promoting cultural events, student exchanges, and people-to-people interactions, the two countries can foster greater understanding and appreciation of each other's cultures.

The shared cultural and linguistic heritage of India and Bangladesh provides a strong foundation for cultural cooperation. By leveraging this shared heritage, the two countries can build bridges of understanding and friendship, strengthening their bilateral relationship.

Looking ahead, the future of the India-Bangladesh relationship is bright. By addressing the challenges and seizing the opportunities, the two countries can create a more prosperous, stable, and secure region for generations to come.

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