INDIA-BANGLADESH RELATIONS: COOPERATION, CHALLENGES, AND WAY FORWARD

Copyright infringement not intended

Picture Courtesy:  THE DIPLOMAT

Context

The deep-rooted partnership between India and Bangladesh, a model for regional cooperation and key to India's foreign policy, is currently being tested by unresolved issues and new geopolitical factors.

Read all about: India-Bangladesh Strategic Recalibration l  India-Bangladesh Trade-Related Tensions l Bangladesh events, a reflection of South Asia's minorities l India Ends Key Transshipment Route for Bangladesh Exports

What is the Current State of India-Bangladesh Partnership?

India-Bangladesh relations are undergoing a pragmatic recalibration following the Bangladesh Nationalist Party (BNP) victory in the February 2026 general election, leading to a diplomatic "reset" after a period of strained ties.

Diplomatic Relation

Government Transition

Following the victory of the BNP in February 2026, Prime Minister Narendra Modi congratulated Tarique Rahman, signaling India's readiness to engage with the new administration despite past tensions.

Visa Services Restoration

India has assured Bangladesh of a gradual full restoration of visa services, which were restricted for nearly 18 months, with medical and double-entry business visas currently prioritized.

Economic Cooperation

Bilateral Trade

Bangladesh remains India's largest trading partner in South Asia, with total trade reaching approximately USD 13.51 billion in FY25. (Source: IBEF)

CEPA Negotiations

Both nations are moving toward a Comprehensive Economic Partnership Agreement (CEPA), aimed at maintaining duty-free access as Bangladesh prepares to graduate from Least Developed Country (LDC) status in late 2026.

Trade Logistics

Major land ports like Petrapole-Benapole, which handles nearly 50% of bilateral trade, remain operational despite recent fluctuations in import/export restrictions. 

Connectivity & Energy Infrastructure

Energy Integration: India currently exports 1,160 MW of power to Bangladesh. Key projects include:

• Maitree Super Thermal Power Plant: A 1,320 MW project developed with Indian assistance.
• India-Bangladesh Friendship Pipeline: Used for transporting high-speed diesel to northern Bangladesh.
• Trilateral Power Trade: A recent agreement allows Nepal to export 40 MW of hydropower to Bangladesh via the Indian grid.

Transport Links

Several cross-border rail links, such as Agartala-Akhaura, are central to India's "Act East" policy, although some infrastructure work faced temporary suspensions during the 2024–2025 political unrest. 

What are the Major Challenges in India-Bangladesh Bilateral Ties?

Diplomatic Friction

The "Hasina" Factor

Former PM Sheikh Hasina's asylum in India since August 2024 is causing major tension. Dhaka's new administration and the BNP consider her presence a "hostile act" and are seeking her extradition to face trial for "crimes against humanity."

Minority Security

India has expressed serious concern over "recurring patterns" of targeted violence against Hindu minorities in Bangladesh following the 2024 political transition, which Dhaka often counters as exaggerated or politicised.

Soft Power & Sport Diplomacy

Cultural relations soured in early 2026 when the BCCI forced an IPL team to release a Bangladeshi pacer, leading Dhaka to ask the ICC to move T20 World Cup matches from India citing security issues.

Security Concerns

Border Killings

Civilian deaths at the border region remain a major source of public anger and a persistent diplomatic strain between the two nations.

• The BSF argues that border deaths are unavoidable due to violent attacks from organized cross-border smuggling syndicates.

Illegal Migration & "Push-ins"

India's domestic narratives surrounding the National Register of Citizens (NRC) and Citizenship Amendment Act (CAA) create anxiety in Bangladesh.  

Resource & Trade Disputes

Water Sharing

The Teesta water dispute complicates India-Bangladesh relations as the 1996 Ganga Water Treaty nears its December 2026 expiration. 

• While Bangladesh demands equitable sharing, India seeks a revised, flexible pact, potentially reducing Bangladesh's share to meet increasing domestic irrigation and operational needs for the Farakka Barrage.

Tit-for-Tat Trade Restrictions: In 2025, both nations imposed trade barriers:

• Bangladesh restricted Indian yarn and rice exports via land ports.
• India retaliated by banning ready-made garment (RMG) imports from Bangladesh through land ports, forcing them to slower, more expensive sea routes.

The China Factor

Bangladesh’s move to seek $1 billion in Chinese funding for the Teesta River project and increased defense ties with Pakistan are viewed by New Delhi as strategic threats. 

Why is Bangladesh Strategically Important for India?

Connectivity and the Northeast

Bangladesh is the vital link between mainland India and its eight northeastern states (the "Seven Sisters"). 

• Alternative to "Chicken’s Neck": India's primary land link to the Northeast is the narrow 22 km Siliguri Corridor. Transit through Bangladesh reduces travel time between the mainland and the Northeast from roughly 31 hours to 10 hours.
• Port Access: Access to Bangladeshi ports like Chittagong and Mongla provides a cheaper and more efficient maritime gateway for landlocked northeastern states.
• Infrastructure: Projects like the Akhaura–Agartala rail link and the Maitri Setu (connecting Tripura to Bangladesh) directly integrate the regional economies. 

Internal and Regional Security

Cooperation with Dhaka is essential for maintaining peace in border regions. 

• Counter-Insurgency: Bangladesh has historically assisted in dismantling safe havens for anti-India insurgent groups like ULFA.
• Border Management: India shares its longest land border (4,096 km) with Bangladesh. Collaboration is necessary to manage illegal migration, human trafficking, and cattle smuggling.
• Counter-Radicalisation: Joint efforts are crucial to combat religious extremism and terrorism that can spill across the porous border. 

Geopolitical and Maritime Strategy

Bangladesh is a major actor in the Bay of Bengal and the broader Indo-Pacific region. 

• Countering China: India views Bangladesh as a key partner in countering China's "String of Pearls" strategy. Maintaining influence in Dhaka helps prevent the establishment of hostile foreign military assets in the Bay.
• Regional Integration: Bangladesh is the "epicentre" of sub-regional frameworks like BIMSTEC and the BBIN (Bangladesh, Bhutan, India, Nepal) initiative, which India uses to promote trade and connectivity. 

Way Forward for India

Inclusive Political & Diplomatic Engagement

Engage All Stakeholders: Communicate with all political parties, civil society, and youth groups in Bangladesh to avoid being seen as favoring one faction.

Track II Diplomacy: Intensify dialogues involving think tanks and academic institutions to counter misinformation and build long-term societal bridges.

Cooperative Federalism: Establish a formal mechanism like a "Bangladesh Engagement Forum" involving Chief Ministers of bordering states (West Bengal, Assam, Tripura) to align regional interests with national foreign policy. 

Strategic Water & Resource Management

Ganga Water Treaty (2026): Technical and political talks must be finalized well before the treaty's expiry in December 2026. India may seek a shorter, 10–15 year renewal to maintain flexibility for its own developmental needs.

Teesta River Solution: Pursue creative diplomatic solutions for the Teesta water-sharing agreement through consensus with West Bengal. This includes adopting basin-wide management and joint hydrological data sharing. 

Economic & Connectivity Deepening

Comprehensive Economic Partnership Agreement (CEPA): Early conclusion of CEPA negotiations is targeted for 2026 to reduce trade deficits and non-tariff barriers.

Multimodal Infrastructure: Accelerate the BBIN Motor Vehicle Agreement and finalize pending protocols to boost sub-regional trade and transit.

Digital & Green Partnerships: Leverage emerging technologies through the Shared Vision for India-Bangladesh Digital Partnership to drive innovation and climate-resilient development. 

Security & Human-Centric Border Management

Smart Border Management: Implement Comprehensive Integrated Border Management Systems (CIBMS) for real-time surveillance to stop drug trafficking and illegal migration.

Non-Lethal Practices: Adopt humane border management to reduce civilian casualties.

Consular Ease: Expand e-medical visa facilities and streamline general visa processes to maintain strong people-to-people ties. 

Managing External Influence

To compete with China's "String of Pearls" and Belt and Road Initiative, India must prioritize transparent, sustainable, and debt-free infrastructure support through the "Neighbourhood First" and "Act East" policies. 

 Conclusion 

India's future with Bangladesh depends on transitioning from a government-centric relationship to a people-centric partnership that prioritizes water-sharing resolutions, seamless connectivity, and mutual security to ensure regional stability.

Source: THEDIPLOMAT

PRACTICE QUESTION Q. China's growing economic and strategic footprint in Bangladesh presents a significant challenge to India's interests in the region. Examine. 150 words