India and Bangladesh: A Strategic Partnership Shaping South Asia’s Future

Regular bilateral defense interactions further cement this cooperation, highlighting the strategic importance of their defense partnership. (Reuters)

India and Bangladesh share a relationship that is deeply rooted in history, language, and culture. This bond has evolved into a robust partnership founded on sovereignty, equality, trust, and mutual understanding, serving as a model for bilateral relations in the region and beyond.

Economic and Trade Partnership

Bangladesh stands as India’s largest trade partner in South Asia, while India ranks as the second biggest trade partner of Bangladesh in Asia. In the fiscal year 2022-23, Bangladesh exported approximately USD 2 billion worth of goods to India, making India its largest export destination in Asia. This thriving trade relationship underscores the economic interdependence and collaboration between the two nations.

Defence Cooperation

The extensive 4,096.7 km border shared by India and Bangladesh is the longest land boundary India has with any of its neighbors. This proximity necessitates active cooperation on various security issues, including police matters, anti-corruption activities, and combating illicit drug trafficking, fake currency, and human trafficking. Regular bilateral defense interactions further cement this cooperation, highlighting the strategic importance of their defense partnership.

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Power and Energy Cooperation

Energy cooperation forms a crucial pillar of India-Bangladesh relations. Bangladesh currently imports 1,160 MW of power from India. The India-Bangladesh Friendship Pipeline, inaugurated in March 2023, facilitates the transport of High-Speed Diesel from India to Bangladesh. Additionally, ONGC Videsh Limited (OVL), in consortium with Oil India Limited, is engaged in offshore oil exploration, indicating a significant collaboration in the energy sector.

Connectivity and Infrastructure

Efforts to enhance connectivity have resulted in the rehabilitation of six pre-1965 rail links between India and Bangladesh. A notable milestone was achieved on November 1, 2023, with the inauguration of the sixth cross-border rail link between Agartala in India and Akhaura in Bangladesh.

The Protocol on Inland Waterways Trade and Transit (PIWTT), operational since 1972, facilitates trade and transit through inland waterways with 10 routes and multiple ports of call. The 2015 and 2018 addendums have further expanded its scope.

In 2023, the Agreement for the usage of Chittagong and Mongla Ports was operationalized, allowing India to utilize these ports in Bangladesh for transit cargo between Northeast and mainland India, thereby enhancing logistical connectivity.

Development Partnership

Bangladesh is the largest development partner of India. Over the past eight years, India has extended three Lines of Credit (LOC) amounting to approximately USD 8 billion for infrastructure development in various sectors, including roads, railways, shipping, and ports. The Government of India has also funded 93 High Impact Community Development Projects (HICDPs) in Bangladesh, supporting the construction of student hostels, academic buildings, skill development institutions, cultural centers, and orphanages.

Capacity Building and Human Resource Development

As an important partner in India’s Indian Technical and Economic Cooperation (ITEC) program, Bangladesh sees around 800 participants annually benefiting from ITEC training courses. In 2024 alone, approximately 1,000 student visas were issued to Bangladeshi students aspiring to study in India under the Self-financing Scheme.

Cultural Cooperation

Cultural ties between India and Bangladesh have been strengthened through initiatives like the revamped Bangladesh Youth Delegation 2022 campaign. In February 2024, a 100-member delegation visited India, exploring sites of academic and cultural interest and engaging with prominent leaders, including the President of India. This initiative reflects the importance of youth connectivity in fostering bilateral relations.