Bangladesh relations with India and China

Bangladesh”s relations with India and China

Context: Both India and China are closely watching Bangladeshs election process due to their economic ties and regional rivalry. How Dhaka handles the expectations of these Asian giants will be key and closely observed internationally.

Background:
• Indias support during Bangladeshs war of liberation in 1971 contrasts sharply with Chinas backing of Pakistan during the same period.
• Despite historical differences, Bangladeshs current relations with India and China are shaped by pragmatism.
• Bilateral trade between India and Bangladesh surpassed $15 billion in 2021-22, reflecting the importance of economic ties.
• India views Bangladesh as a crucial eastern buffer and provides vital support in areas like ports and power grid access, essential for 
Bangladeshs development.
• Historical ties and geographical proximity contribute to a symbiotic trade relationship between India and Bangladesh.
• Bangladeshs two-way trade with China exceeded $25 billion in 2022, illustrating the significant economic partnership.
• Bangladesh strategically aligns with China, benefiting from transformative mega projects supported by Chinese investments.
• Chinese investments in Belt and Road Initiative (BRI) infrastructure projects in Bangladesh have exceeded $10 billion, contributing to the countrys infrastructure development.

Intersection of Geopolitics and Economics: 
• Bangladesh aims to achieve developed nation status by 2041 and has strategically leveraged economic and technological strengths from India and China to support this goal.
• The country has granted port access to both India and China, facilitating modernization initiatives at Mongla port under the Belt and Road Initiative (BRI) and the Bangladesh-China-India-Myanmar Corridor (BCIM).
• Efforts were made to enhance Pyra port through cooperative initiatives; however, India withdrew from the project due to concerns over a Chinese companys involvement in a public-private partnership.
• Bangladesh Indo-Pacific outlook emphasizes engagement with regional and global stakeholders for human security, connectivity, and the blue economy, while maintaining neutrality in geopolitical tensions.
• Bangladesh imports 1,160 MW of electricity from India and has enabled approximately $450 million of Chinese investments in domestic power generation, totaling 1,845 MW as of 2021.
• The increasing demand for electricity has prompted the expansion of energy supply, with concurrent energy deals with both India and China supporting Bangladesh industrialization interests.
• As a smaller neighbor navigating the interests of regional giants, Bangladesh has demonstrated national agency by cooperating with countries that have rivalries with each other, fostering strategic partnerships while balancing regional dynamics.