India–Bangladesh Relations: Convergence and Divergence

Context

India and Bangladesh share deep historical, cultural, economic, and strategic ties. However, recent political developments in Bangladesh have introduced new challenges, even as both countries continue to cooperate in trade, connectivity, energy, and regional integration.

Areas of Convergence

1. Economic and Trade Cooperation

1. Bangladesh is India’s second-largest trading partner in South Asia, with bilateral trade reaching nearly USD 14 billion in FY 2023–24.
2. Ongoing negotiations for a Comprehensive Economic Partnership Agreement (CEPA).
3. Expanding cooperation in textiles, pharmaceuticals, food processing, and regional value chains.

2. Connectivity and Infrastructure

1. Projects such as the Akhaura–Agartala Rail Link and Khulna–Mongla Port Rail Line have strengthened regional connectivity.
2. Improved transport networks facilitate trade and enhance access to India’s Northeast.

3. Energy Cooperation

1. The India–Bangladesh Friendship Pipeline and Maitree Super Thermal Power Plant have deepened energy cooperation.
2. Cross-border power trade supports regional energy security.

4. Trade Facilitation and Digital Integration

1. Adoption of digital customs systems and the VINIMAY platform has improved trade efficiency.
2. Efforts are underway to streamline cargo movement and reduce transaction costs.

5. Smart Border Management

1. Cooperation on technology-driven border surveillance and management.
2. Joint efforts to curb smuggling, trafficking, and other transnational crimes.

6. Development Partnership

1. India has extended nearly USD 8 billion in development assistance through Lines of Credit and grants.
2. Cooperation spans transport, railways, ports, shipping, and other infrastructure sectors.

7. Climate and Disaster Management

1. Collaboration in flood forecasting, hydrological data sharing, and disaster response.
2. Joint efforts to strengthen resilience in shared river basins.

8. Regional Integration

1. Both countries actively support BIMSTEC and BBIN initiatives.
2. Shared emphasis on regional connectivity, trade, and economic integration.

9. People-to-People Ties

1. Strong cultural, linguistic, and historical linkages continue to underpin bilateral relations.
2. Educational, tourism, and academic exchanges contribute to mutual understanding and goodwill.

Areas of Divergence

1. Political Differences

1. The presence of former Prime Minister Sheikh Hasina in India remains a sensitive bilateral issue.
2. Political perceptions continue to influence mutual trust.

2. Border Issues

1. Concerns over illegal migration, alleged push-back incidents, and border management practices persist.
2. Localised disputes occasionally create tensions.

3. Water-Sharing Disputes

1. Renewal of the Ganges Water Treaty and the unresolved Teesta Agreement remain contentious.
2. Climate change has increased pressure on transboundary water governance.

4. Security Concerns

1. India remains concerned about extremism, cross-border security threats, and the protection of minority communities.
2. Stability in Bangladesh directly affects India’s Northeastern region.

5. Trade and Economic Frictions

1. Non-tariff barriers, infrastructure bottlenecks, and procedural delays constrain trade potential.
2. Issues related to visa services and transit facilities remain unresolved.

6. Geopolitical Divergences

1. Bangladesh’s expanding engagement with China has introduced new strategic considerations.
2. Differing perceptions regarding regional influence in the Bay of Bengal occasionally create concerns.

Challenges and Way Forward

 Conclusion

India and Bangladesh possess significant complementarities in trade, connectivity, energy, and regional cooperation. Sustained dialogue, mutual sensitivity to core concerns, and deeper people-centric engagement will be essential to transform existing challenges into opportunities and build a stable, mutually beneficial, and future-oriented partnership.