INDIA – BANGLADESH
Current Relations
- Economic Relations
- Bilateral Trade: $10 billion.
- Trade Relations:
- $9bn trade surplus for India.
- Various trade agreements: APTA, SAFTA, SAPTA.
- Border Haats: Tripura and Meghalaya; a total of 12.
- Border Trade: Easing of restrictions in land ports, starting from Akhaura (Tripura) and Ghojadanga (West Bengal).
- FDI: India invested over $570 million.
- Line of Credits: Developmental assistance totaling $8 billion.
- Energy Sector:
- Cooperation in power sector with Bangladesh importing 1200 MW of electricity.
- Rooppur nuclear plant – a joint collaboration of India and Russia.
- Connectivity:
- Protocol on inland water transit and trade.
- Intra and inter-border connectivity – Chattogram and Mongla Ports.
- Agartala-Akhaura Rail Project.
- Vaccine Diplomacy: India provided 1.2 million free doses of AstraZeneca COVID-19 vaccine to Bangladesh.
- Overland Goods Transit: Bangladesh permitted the use of its territory for the transit of Indian goods.
- Strategic Relations
- Defense: The Defense Cooperation Framework pact includes military equipment and tech transfer.
- Joint Military Exercises: SAMPRITI.
- Operation Insaniyat: Humanitarian aid to Bangladesh for the Rohingya crisis.
- Boundary Dispute: Resolved boundary disputes in 2015.
- Multilateral Relations/Engagements
- SAARC
- BBIN
- SAFTA
- SACEP
- SASEP
- SARI
- BIMSTEC
- Cultural
- Shared History: Bangladesh was part of undivided India until Partition.
- Joint Declaration: On the 150th birth anniversary of Mahatma Gandhi.
- National Knowledge Network (NKN): India shares NKN with Bangladesh digitally.
- New Rail Links: “Mitali Express” connecting Dhaka and New Jalpaiguri, inaugurated during the 2021 visit.
- Scholarships: PM Modi announced “Swarna Jayanti Scholarships” for Bangladeshi youth in 2021.
Importance/Benefits
- Strategic
- Northeast East Security: Bangladesh has aided India in combating North East insurgent groups.
- Example: Bangladesh has helped neutralize ULFA groups and curb cross-border terrorism.
- Bridge to South East Asia: Bangladesh is India’s gateway in the Act East policy.
- Bay of Bengal Piracy: Joint patrolling has reduced piracy operations.
- Balancing China: Bangladesh is an ally against Chinese expansionism in the region.
- Example: Bangladesh has shown interest in joining the QUAD group negotiations in May 2021.
- Fighting Cross-Border Crime: Both nations have collaborated in fighting human and drug trafficking and illegal wildlife trade.
- Economic
- Market Access: Bangladesh is one of the biggest trade partners for India in the South Asia region.
- Border Haats: Aid in people-to-people product exchange and boost border town economies.
- Cross-Border Energy Trade: Bangladesh is a part of cross-border energy trade partners with India and can help in bringing energy security to the Northeast.
- Northeast India Economy: Transit through Bangladeshi ports and overland routes can save time and money, aiding Northeast India’s development.
- Medical Tourism: India is a hub for medical tourism for Bangladeshi citizens.
- Data: The Ministry of Tourism reports that 50% of all medical tourists in India are from Bangladesh.
- Cultural
- People-to-People Linkages: There is a high level of familial and public relations between the two nations.
- Public Approval: A high positive approval rate exists between the people of both nations.
- Tourism: Flight connectivity and proximity have boosted Bangladeshi tourists to India, benefiting India’s economy.
- Student Exchanges: India is emerging as an education hub for Bangladeshi students.
- Vaccine Diplomacy: Bangladesh was the first and largest beneficiary of India’s Vaccine Maitri initiative, receiving a total of almost 22.6 million vaccine doses (including grant, commercial, and COVAX).
Concerns/Issues
- Strategic
- Bangladesh’s Lack of Opposition: There is no effective opposition in Bangladesh as most leaders, such as Khaleda Zia, are exiled or in custody, which raises concerns about democratic values.
- Chinese Influence: China has filled gaps that India cannot, like providing $1 billion to Bangladesh for an irrigation project on the Teesta River.
- Anti-Indian Sentiment: There has been a rise in anti-Indian sentiment, particularly among Islamic groups.
- Example: PM Modi’s 2021 visit was accompanied by protests by Hefazat-e-Islam, a radical Islamist group.
- Rohingya Issue: The presence of Rohingya groups in Bangladesh and their migration into India is a concern for security.
- Illegal Migrants: Illegal migration has strained resources and threatened cultural assimilation in Indian states like Assam and West Bengal.
- Smuggling: Frequent incidents of cattle, human trafficking, and drug smuggling occur along the border.
- CAA/NRC: Both Citizenship Amendment Act (CAA) and National Register of Citizens (NRC) have fueled rhetoric against Bangladesh and affected relations.
- Economic
- Teesta River Issue: The unresolved riparian issue impacts food security and farmer welfare in Bangladesh.
- Delays in Project Execution: Delays in Indian projects have hampered economic development.
- Chinese Trade Deficit: China is Bangladesh’s biggest trading partner and largest supplier of military hardware, becoming Dhaka’s largest foreign investor.
India should leverage the cultural and economic strengths it shares with Bangladesh and also address concerns over migration and water disputes, aligning with the Gujral doctrine and the Neighborhood First policy.