India-Bangladesh Relations

India-Bangladesh Relations

News: Recently, the Prime Minister of Bangladesh has visited India and held talks with Indian Prime Minister. India and Bangladesh have signed seven agreements for cooperation in areas ranging from sharing of river waters to space and unveiled new connectivity and energy initiatives.

Key Highlights:
• 7 MoU's agreed upon Withdrawal of water from Kushiyara river
• Co-op in Space technology
• Train Bangladeshi railway and judicial officers in India
• Collaboration on IT systems in movement of Freight Goods
• Space & Technology Co-op 
• Broadcasting between Prasar Bharati and Bangladesh
• Thermal Power Project - The two nations unveiled the first unit of the Maitree super thermal power project being built in Khulna division of Bangladesh with concessional funding from India.
• Loans and Advances – India has provided concessional loans worth $ 9.5 Billion for development projects in Bangladesh for rail connectivity, connecting Mongla port with Darshana-Gede, supply of road construction equipment and machinery etc.
• Defense procurement - In 2018, India has extended USD 500 million defence Line of Credit (LoC) to Bangladesh.
• Rushpa rail bridge - The 5.13-km Rupsha rail bridge was also inaugurated, a key part of the 64.7-km Khulna-Mongla port broad gauge railway project. The bridge was constructed with an Indian line of credit of $389 million.

Why Bangladesh is important for India?
• In 2021-22, Bangladesh has emerged as the largest trade partner for India in South Asia and the fourth largest destination for Indian exports worldwide.
• India’s export to Bangladesh – Raw cotton, non-retail pure cotton yarn, electricity.
• Indian imports from Bangladesh include textile scraps, pure vegetable oils.
• The Prime Minister of India also said that India and Bangladesh will soon commence negotiations on a Bilateral Comprehensive Economic Partnership Agreement (CEPA).

What are some of the pending issues?
• Sharing of river waters (Teesta river)
• Border issues and border incidents
• Bangladesh’s concerns over roll out of NRC in Assam.
• Bangladesh’s growing ties with China and its involvement in the Belt and Road initiative.
• Bangladesh’s dependence on China for military equipment’s.