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Mahesh

22/01/24 10:19 AM IST

India- Bangladesh ties

In News
  • Prime Minister Sheikh Hasina returned to power in Bangladesh for a historic fourth straight term earlier this month after her party, the Awami League, secured two-thirds of the seats in the January 7 national elections.
India- Bangladesh
  • India’s relationship with Bangladesh is anchored in common history, heritage, culture and geographical proximity, the foundation of which was laid in the 1971 Bangladesh Liberation War.
  • India provided critical military and material support to assist Bangladesh in its fight for independence from Pakistan.
  • This became a primary factor in shaping the newly independent nation’s policy, as acknowledged by ‘Bangabandhu’ Sheikh Mujibur Rahman: “Friendship with India is a cornerstone of the foreign policy of Bangladesh.”
  • There have been a few ups and downs, but India and Bangladesh have built cooperation in trade, energy, infrastructure, connectivity, defence, security and science over the past 15 years.
  • India and Bangladesh gradually expanded their partnership to strengthen cooperation in trade, development and water-sharing.
  • The two countries successfully resolved long-pending issues, like the land boundary agreement (LBA) in 2015 and a maritime dispute over territorial waters.
  • In September 2022, India and Bangladesh inked an agreement on the sharing of the waters of the common border river Kushiyara — the first such pact since the Ganga Waters Treaty of 1996.
Economic Cooperation
  • Bilateral trade between India and Bangladesh has grown steadily over the last decade.
  • Bangladesh has emerged as India’s largest trade partner in South Asia, with bilateral trade reaching $18 billion in 2021-2022 from $10.8 billion in 2020-21, though there was a dip in 2022-23 when the trade dropped to $14.2 billion due to the COVID pandemic and the Russia-Ukraine war.
  • Reflective of the growing trust between the two nations, Bangladesh started using rupees in its trade transactions with India last year to reduce dependence on the U.S. dollar and strengthen regional currency.
  • India is also the second biggest trade partner of Bangladesh, with exports amounting to $2 billion in Indian markets.
  • In 2022, both nations successfully concluded a joint feasibility study on a Comprehensive Economic Partnership Agreement (CEPA).
  • The agreement, typically designed to reduce or eliminate customs duties on traded goods and simplify trade norms, is anticipated to open up broader social and economic opportunities, ultimately raising living standards in both countries.
  • The CEPA gains additional significance as Bangladesh is set to lose its Least Developed Country (LDC) status after 2026, thereby losing its duty-free and quota-free market access in India.
  • The two countries are members of various regional trade agreements such as the Asia Pacific Trade Agreement (APTA), the SAARC Preferential Trade Agreement (SAPTA) and the Agreement on South Asian Free Trade Area (SAFTA) which govern the tariff regimes for trade. Bangladesh is also part of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) which has its headquarters in Dhaka.
  • The group is a multilateral regional organisation established to improve cooperation between littoral and adjacent countries in the Bay of Bengal region.
Regional Connectivity
  • Bangladesh, as India’s immediate neighbour in the East, plays a crucial role in its strategic plans.
  • Sharing 54 rivers and a 4,096-km border, the India-Bangladesh border is the longest land boundary India has with any of its neighbours.
  • The Maitree Express connecting Kolkata with Dhaka was started in 2008 after a hiatus of over 40 years.
  • Later, the Kolkata-Khulna Bandhan Express and New Jalpaiguri-Dhaka Mitali Express were added to the network. A cross-border bus service operates from Shillong, Agartala and Kolkata to Dhaka.
  • India is also collaborating with Bangladesh to upgrade the India-Bangladesh Protocol (IBP) route and the Protocol on Inland Water Transit and Trade (PIWT&T) for transport of cargo.
  • The BIMSTEC Master Plan for Transport Connectivity focuses on connecting major transport projects in India, Bangladesh, Myanmar and Thailand, thereby establishing a shipping network.
  • The Hasina government has also expressed its eagerness to partner in the ongoing India-Myanmar-Thailand trilateral project — a 1,400-km highway that will link India with Southeast Asia by land.
  • The joint venture of the Maitree Super Thermal Power Project in Rampalbegan began commercial production last year. India also extended financial assistance for the construction of the India-Bangladesh Friendship Pipeline for the supply of diesel from Siliguri to Parbatipur.
Disputes
  • Cross-border terrorism, infiltration, and human trafficking are additional threats to internal security.
  • The rise of majoritarian forces adds another layer to the complex landscape.
  • While violence against Muslims has increased in India in the past few years, PM Hasina has stood at the forefront to condemn the attacks and express displeasure over comments by Indian leaders on “illegal” immigrants.
Way forward
  • Political stability in Bangladesh holds immense significance for India.
  • Concerns loom over the possibility of political unrest in the country, fuelled by allegations of an unfair election, mounting international pressure, with potential ripple-effects across the border.
  • India’s concerns is the deepening relationship between Bangladesh and China under Ms. Hasina, marked by substantial Chinese investments in infrastructure in recent years.
  • China built 12 highways, 21 bridges and 27 power and energy projects in Bangladesh over the past few years, as per Chinese Ambassador to Bangladesh.
Source- The Hindu

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