Bangladesh Prime Minister Sheikh Hasina paid a two-day (June 21-22) state visit to India to further strengthen the existing friendly ties between the two countries, fostering cooperation and collaboration in diverse fields. On June 22, Indian Prime Minister Narendra Modi and his Bangladeshi counterpart Hasina held extensive talks covering the entire gamut of bilateral relations. The overall strategic ties between the two South Asian countries have been consolidated over the last decade. The multifaceted bilateral partnership encompasses vast areas including security, trade and commerce, science and technology, power and energy, connectivity, defence and maritime affairs.
A Joint Statement titled “India-Bangladesh Shared Vision for Future” highlighted that “as a close and valued neighbour with rapidly growing capabilities, Bangladesh is at the converging point of India’s Neighbourhood First Policy, Act East Policy, SAGAR (Security and Growth for all in the Region) doctrine and the Indo-Pacific Vision, and an indispensable partner in the development of India’s Northeastern region. Similarly, Bangladesh views India as an important partner in the pursuit of its Neighbourhood Foreign Policy for ensuring shared peace and prosperity”.
After the Modi-Hasina meeting, Indian and Bangladeshi officials signed seven Memoranda of Understanding (MoUs) on digital partnership, green partnership, maritime cooperation, blue economy, space cooperation, railway connectivity, Oceanography, and defence cooperation, and renewed three pacts on health and medicine, disaster management and fisheries. The two premiers also agreed to boost cooperation in counter-terrorism, combating radicalisation and peaceful management of borders.
New Delhi and Dhaka have continuously been engaged in talks at various levels to take forward the bilateral ties. India was the first foreign destination of Bangladesh Foreign Minister Dr Hasan Mahmud since Hasina’s Awami League returned to power in January 2024. He was in New Delhi from February 7 to 10 to bolster the bilateral relations and promote mutual prosperity and development. The 2023 also witnessed a series of bilateral activities signifying the growing friendly ties between the two countries. At the June bilateral summit, External Affairs Minister Dr Subramanyam Jaishankar noted that over the years, India and Bangladesh have forged an enduring friendly relationship marked by shared history, culture and geographical contiguity.
Greater Connectivity and Economic Integration
The shared vision stresses on transforming geographical proximity into economic opportunities through multifaceted connectivity. It envisages connectivity in its broadest form—physical connectivity covering multi-modal transport and cross-border trade and transit infrastructure for seamless movement of people, goods and services as well as energy and digital connectivity. A key Indian initiative is the extension of transit facilities for Bangladeshi goods to Nepal and Bhutan through its railway network. Moreover, the early operationalisation of the Bangladesh, Bhutan, India and Nepal (BBIN) Motor Vehicle Agreement (MVA) and newly-signed MoU between India and Bangladesh on railway connectivity will ensure smooth movement of goods and services.
In a major boost to the connectivity front, India and Bangladesh at the recent bilateral summit announced a new passenger train service between Rajshahi and Kolkata and a new bus service from Chittagong to Kolkata. The Protocol on Inland Waterways Trade and Transit (PIWTT), operational since 1972, facilitates trade and transit through inland waterways with 10 routes and several ports of call. The 2015 and 2018 addendums have further broadened their scopes.
Reports indicate that India is also keen to sign a new agreement to play a bigger role in the management of Bangladesh’s Mongla Port similar to its involvement in the Chabahar Port in Iran. In 2023, the MoU for the usage of Chittagong and Mongla ports was opeationalised, allowing India to use the two Bangladeshi ports for transit cargo between North East and mainland India, enhancing waterway connectivity. India’s overall connectivity with Bangladesh has been expanded significantly over the years. Prime Modi said in the last 10 years, both the countries have been making efforts to restore the cross-border connectivity that existed before 1965 and they have now decided to focus on digital and energy connectivity.
Digital and Green Partnerships
Recognising the vast potential of emerging technologies, New Delhi and Dhaka have decided to collaborate through the “Shared Vision for India-Bangladesh Digital Partnership” and the “Shared Vision for India-Bangladesh Green Partnership for a Sustainable Future”. These initiatives will foster greater cooperation and stimulate the development of digital and green technologies to boost economic growth especially for Bangladesh, and ensure environmental conservation and regional prosperity. Both the initiatives are designed to benefit the youth and future generations of two nations.
In a major development on March 18, 2023, the two premiers jointly inaugurated the India-Bangladesh Friendship Pipeline to transport high-speed diesel from Assam’s Numaligarh Refinery Limited (NRL) to northern Bangladesh’s Parbatipur depot, adding new impetus to energy connectivity front. The increasing energy cooperation is a significant element of the growing India-Bangladesh partnership. India’s public sector units (PSUs) like ONGC Videsh Nigam Limited (OVL), in consortium with Oil India Limited, have been engaged in offshore oil exploration in Bangladesh’s maritime zone.
Expanding Power Cooperation
A vital component of the flourishing India-Bangladesh ties has been the growing power cooperation particularly in regional electricity trade. At the recent bilateral summit, the two sides pledged to continue expanding their power collaboration and facilitate intra-regional electricity trade, including competitively-priced clean energy projects in India, Nepal and Bhutan, through the Indian electricity grid, reiterating the region’s commitment towards eco-friendly and sustainable development. India and Bangladesh also agreed to expedite the construction of the 765 kiloVault (kV) high-capacity Katihar-Parbatipur-Bornagar power interconnection with suitable Indian financial assistance, to act as the anchor for grid connectivity.
Prime Minister Modi stated at the New Delhi bilateral summit that the export of electricity from Nepal to Bangladesh through the Indian grid has become the first example of sub-regional cooperation in the power sector. In January 2024, India and Nepal signed an agreement to import up to 10,000 megawatts (MW) of electricity from Nepal in the next 10 years. Under the provisions of this agreement, India will facilitate electricity transmission from Nepal to Bangladesh through the country’s power infrastructure.
Furthermore, to expand sub-regional power cooperation and investment, New Delhi and Kathmandu inked an agreement for National Hydroelectric Power Corporation Limited (NHPC) to develop the 669 MW Lower Arun Hydroelectric Project in Nepal. Bangladesh can procure much required electricity from the project once it becomes operational. Bangladesh also seeks to import hydropower from Bhutan using India’s transmission network. It is expected that India may agree to transit power from Bhutan to Bangladesh via its territory fostering greater sub-regional power cooperation.