India-Bangladesh Relations: Key Insights for UPSC Preparation

Introduction Of India Bangladesh Relations

• The recent arrest of Chinmoy Krishna Das, a prominent Vaishnavite leader and former member of ISKCON, has ignited widespread protests in Dhaka’s Shahbag neighborhood and Chittagong. 
• This development comes at a time of heightened tensions between India and Bangladesh, following the exit of Sheikh Hasina’s government. 
• As the political landscape in Bangladesh undergoes significant change, its implications for India-Bangladesh relations are profound. 

Understanding the Reasons Behind Sheikh Hasina’s Exit

• Student Protests Turned Nationwide Movement: What began as peaceful protests against a 30% civil service reservation for freedom fighters evolved into a nationwide movement, fueled by the government’s harsh response. Actions like curfews with shoot-on-sight orders, attacks by the Awami League’s student wing, and branding protesters as “Razakars” (a derogatory term linked to 1971 war collaborators) galvanized public dissent.
• Economic Slowdown and Rising Discontent: While Sheikh Hasina’s tenure saw Bangladesh’s per capita income triple and over 25 million people lifted out of poverty, the post-pandemic global economic slowdown severely impacted the garment industry. Rising unemployment and inflation added to public frustration.
• Erosion of Democratic Values: Elections in 2014, 2018, and 2024 faced criticism for violence, opposition boycotts, and low voter turnout, eroding public trust in democratic governance.
• Authoritarian Policies: Increasing reliance on hard power created a climate of fear. Laws like the Digital Security Act 2018 were used to stifle dissent, restricting freedom of speech and fostering discontent.
• Growing Economic Inequality: Corruption scandals involving major corporations like CLC Power and Western Marine Shipyard spotlighted rising inequality, with bad loans amounting to billions of Bangladeshi Taka. This exacerbated the divide between economic growth and public well-being.

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Challenges to India-Bangladesh Relations Post-Hasina

• Rise in Ethnic Violence:
  • Renewed attacks on Bangla-speaking Hindus in Bangladesh have reignited fears among minorities, leading to protests and calls for safety guarantees. 
  • For example, during Durga Puja in 2021, communal violence in Bangladesh left multiple Hindu temples vandalized, causing alarm across the border in India. 
  • Similarly, retaliatory violence targeting Bangladeshi migrants in states like Assam has created a hostile environment, further straining bilateral ties.
• Security Threats from Anti-India Elements: 
  • The resurgence of anti-India groups, reminiscent of the BNP-Jamaat era (2001–2006), could reignite cross-border militancy. 
  • For instance, during the BNP-Jamaat regime, groups like the Harkat-ul-Jihad-al-Islami (HuJI) used Bangladesh as a base for launching anti-India operations. 
  • Such threats may resurface, posing significant challenges to India, already managing tense standoffs with China in Ladakh and with Pakistan in Kashmir.
• Connectivity Concerns:
  • Strained ties risk disrupting India’s access to its Northeast through Bangladesh, increasing reliance on the vulnerable “Chicken’s Neck” corridor. 
  • For example, India currently benefits from transit agreements that facilitate the movement of goods to the Northeast via Chittagong and Mongla ports in Bangladesh. 
  • Any disruption in these routes would severely impact trade and connectivity, particularly amid instability along the Myanmar border.
• Stalled Trade and FTA Negotiations: 
  • Bilateral trade, valued at $13 billion in FY 2023–24, is at risk due to the political transition. 
  • For example, ongoing discussions about a Free Trade Agreement (FTA), which would reduce tariffs and boost economic ties, have stalled. 
  • The uncertainty threatens sectors like garments and textiles, where Bangladesh heavily depends on Indian raw material imports, potentially impacting both economies.
• Strained Public Relations:
  • Anti-India sentiment among Bangladeshi citizens and mistrust from new political leadership could harm cultural and people-to-people ties. 
  • For instance, public protests in Bangladesh have often criticized India’s perceived interference in domestic politics, as seen during the Teesta water-sharing controversy. 
• Geopolitical Intrusions by China and Pakistan:
  • Both China and Pakistan are likely to exploit the political shift to undermine India’s strategic position in Bangladesh. 
  • For example, China has already made significant inroads through infrastructure investments under the Belt and Road Initiative (BRI), such as the Padma Bridge. 
  • Pakistan, on the other hand, could leverage its historical ties with certain political factions in Bangladesh to foment anti-India sentiment and promote its agenda in the region.

Enduring Issues in India-Bangladesh Relations

• Transboundary River Water Disputes:
  • Despite sharing 54 rivers, India and Bangladesh have signed only two water-sharing treaties: the Ganga Waters Treaty (1996) and the Kushiyara River Agreement (2022). 
  • The unresolved Teesta River dispute remains a significant flashpoint. Bangladesh has long demanded an equitable distribution of Teesta waters, which India has delayed, citing opposition from the state of West Bengal. 
  • For instance, in 2011, a proposed Teesta agreement fell through at the last minute due to objections from West Bengal, creating a diplomatic impasse.
• Rohingya Repatriation Dilemmas: 
  • Both countries have struggled to align their priorities on the Rohingya crisis. India emphasizes the repatriation of Rohingyas from its territory before facilitating returns from Bangladesh, which hosts over 1 million Rohingya refugees in camps like Cox’s Bazar. 
  • For example, the Kaladan Multi-Modal Transit Transport Project, crucial for India’s connectivity with Myanmar and Southeast Asia, has faced delays partly due to unrest stemming from the Rohingya issue.
• Cross-Border Crimes:
  • Criminal activities along the India-Bangladesh border continue to pose significant security threats.
  •  Examples include the cattle smuggling trade, which thrives due to porous borders and high demand for beef in Bangladesh. 
  • Infiltration incidents, such as the arrest of Bangladeshi nationals by Indian security forces in states like West Bengal and Assam, highlight concerns over illegal migration. 
  • Additionally, human trafficking cases, particularly involving women and children, have been reported frequently in districts like Nadia and Malda.
• Drug Trafficking:
  • Bangladesh remains a critical transit hub for heroin smuggling, exacerbating India’s security concerns. 
  • The 2007 International Narcotics Control Board (INCB) report identified Bangladesh as a key route for heroin trafficking from Southeast Asia to Europe. 
  • For instance, the seizure of large consignments of yaba (methamphetamine) tablets along the Tripura border underscores the growing drug trade between the two nations, affecting border states like Assam, Meghalaya, and West Bengal.
• Increasing Chinese Influence:
• • Bangladesh’s engagement with China under the Belt and Road Initiative (BRI) has significantly expanded Beijing’s footprint in South Asia. 
  • For example, the construction of the Padma Bridge—a $3.6 billion infrastructure project financed by China—showcases its growing influence. 
  • Similarly, China has invested in 27 power and energy projects, including the Payra Thermal Power Plant, and has supplied two submarines to Bangladesh, highlighting its strategic ambitions. This growing influence poses challenges to India’s regional aspirations.

Why Bangladesh Matters to India? 

• Geostrategic Location:
  • Bangladesh’s strategic position along the Bay of Bengal makes it a crucial partner for India’s connectivity to Southeast Asia and beyond. 
  • For example, the Kaladan Multi-Modal Transit Transport Project, linking India’s Northeast to Myanmar through Bangladesh, is vital for boosting regional trade. 
  • Additionally, agreements allowing the use of Chittagong and Mongla ports enable seamless transportation of goods between India’s mainland and its northeastern states.
• Geopolitical Stability:
  • A stable Bangladesh supports India’s counter-terrorism efforts and enhances regional security. 
  • For instance, Sheikh Hasina’s government helped dismantle terror networks like Harkat-ul-Jihad-al-Islami (HuJI), which operated out of Bangladesh during the BNP-Jamaat regime. 
  • Furthermore, Bangladesh’s cooperation in border management, including joint operations to curb insurgency in the Northeast, has been crucial for India’s internal security.
  •  Bangladesh’s support also strengthens India’s case for a permanent seat in the UN Security Council, as Dhaka has been a consistent ally in international forums.
• Economic Ties:
  • Bangladesh is India’s largest trading partner in South Asia, with bilateral trade reaching $13 billion in FY 2023–24. 
  • India’s exports to Bangladesh include essential items like textiles, machinery, and food grains, supporting its goal of becoming a $5 trillion economy.
  •  For example, the India-Bangladesh Free Trade Agreement (FTA) under negotiation aims to further boost trade by reducing tariffs and promoting investment.
  •  Moreover, the Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicles Agreement enhances economic interconnectivity in the region.
• Cultural Affinity:
  • India and Bangladesh share deep cultural and historical ties, underpinned by their shared struggle during the 1971 Liberation War.
  • Religious and cultural sites, such as the Ramna Kali Mandir in Dhaka and Kantanagar Temple, attract Indian pilgrims, strengthening people-to-people connections. 
  • Additionally, Bangladesh’s significant Hindu-Bengali population reinforces these ties, with cultural exchanges like the India-Bangladesh Film Festival promoting mutual understanding.
• Regional Collaboration:
• • Bangladesh’s active participation in regional initiatives like BIMSTEC and SAARC is vital for fostering peace and development in South Asia. 
  • For example, Bangladesh’s role in BIMSTEC’s Bay of Bengal Maritime Cooperation Agreement enhances regional efforts in combating piracy and promoting sustainable development. 
  • Bangladesh’s support for SAARC initiatives, such as the SAARC Food Bank, ensures regional cooperation during times of crisis.

Progress in India-Bangladesh Relations During Sheikh Hasina’s Tenure

• Combating Anti-India Forces: 
  • Under Sheikh Hasina’s leadership, Bangladesh significantly curtailed the activities of anti-India terror groups. 
  • For instance, groups like Harkat-ul-Jihad-al-Islami (HuJI) and Jamaat-ul-Mujahideen Bangladesh (JMB), which had used Bangladeshi territory for anti-India activities during the BNP-Jamaat regime, were dismantled. 
  • The crackdown on ULFA (United Liberation Front of Assam) militants operating in Bangladesh further demonstrated the government’s commitment to security cooperation.
• Boosting Bilateral Trade:
  • Trade between India and Bangladesh reached $13 billion in FY 2023–24, with Bangladesh emerging as India’s largest trading partner in South Asia.
  •  India granted duty-free access to Bangladeshi exports under the South Asian Free Trade Area (SAFTA) framework. 
  • For example, garments and textiles from Bangladesh dominate the Indian market, while India exports essential goods like cotton and machinery, ensuring mutual economic growth.
• Infrastructure Development:
  • Numerous connectivity projects were completed during Hasina’s tenure, enhancing regional integration.
  •  The Akhaura-Agartala rail link, inaugurated in 2023, provides a vital trade and passenger route. 
  • Similarly, the agreement to use Mongla and Chittagong ports for cargo movement between India’s mainland and Northeast has streamlined logistics and reduced transportation costs.
• Land Boundary Agreement (2015):
  • The historic Land Boundary Agreement (LBA) resolved long-standing disputes over 162 enclaves, allowing 50,000 residents to choose their country of citizenship. 
  • This agreement not only settled territorial disputes but also created goodwill, showcasing a landmark moment in bilateral relations.
• Energy Partnerships: 
  • Energy cooperation deepened through initiatives like the India-Bangladesh Friendship Pipeline, connecting Siliguri in West Bengal with Parbatipur in Bangladesh, which transports one million metric tonnes of high-speed diesel annually. 
  • Additionally, Bangladesh imports nearly 2,000 MW of electricity from India, underscoring the strategic partnership in energy security.
• Defense and Tourism Collaboration:
  • Defense ties were strengthened with joint military exercises such as Exercise Sampriti (Army) and Exercise Bongosagar (Navy), enhancing interoperability between the two nations’ armed forces. 
  • On the tourism front, Bangladeshis account for a significant portion of foreign tourists in India, with Kolkata and Delhi being popular destinations. 
  • For example, over 2.3 million Bangladeshis visited India in 2019, making them the largest group of international tourists.
• Medical Collaboration:
• • According to a CareEdge Ratings report, Bangladesh accounts for around 50-60% of India’s total medical tourism inflow. 

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India’s Strategic Approach Amid the Crisis

• Addressing Minority Attacks:
  • India must actively raise concerns about violence against minorities in Bangladesh, both bilaterally and at international forums like the United Nations Human Rights Council (UNHRC). 
• Backing Democratic Aspirations
  • India should support Bangladesh’s democratic evolution without direct interference, aligning with its past approach to Nepal’s pro-democracy movement in 2006, where India played a key diplomatic role in facilitating the transition from monarchy to a multi-party democracy. 
• Engaging New Leadership:
  • Expressing readiness for economic collaboration with Bangladesh’s new government is essential to maintain bilateral ties. 
  • For instance, India’s engagement with Mohamed Muizzu’s administration in the Maldives, despite initial hostility, demonstrates the importance of adapting to political transitions.
• Strengthening Border Management:
  • Strengthening border security is crucial to combat cross-border crimes like smuggling and trafficking. 
  • Joint task forces, similar to the Narcotics Control Bureau’s collaboration with Bangladeshi agencies, can tackle drug smuggling effectively.
  •  Additionally, implementing smart border systems, such as automated surveillance and fencing, akin to India’s initiatives on the Indo-Pak border, can enhance security while facilitating legitimate trade and movement.
• Promoting Digital Connectivity:
  • Establishing high-speed internet corridors and fostering e-commerce can unlock significant economic opportunities.
  •  For example, the BBIN Motor Vehicle Agreement (Bangladesh-Bhutan-India-Nepal) has the potential to include digital trade components, enhancing regional connectivity. 
  • Initiatives like a cross-border digital payment system could streamline transactions, benefiting businesses and consumers on both sides.
• Finalizing the FTA:
• • Expediting the India-Bangladesh Free Trade Agreement (FTA) is critical as Bangladesh transitions out of its Least Developed Country (LDC) status by 2026. 
  • For instance, the success of India’s FTA with ASEAN countries highlights the benefits of tariff reductions and economic integration. 
  • A well-structured FTA with Bangladesh could safeguard bilateral trade, particularly in textiles and garments, while preventing misuse by third parties like China under the Regional Comprehensive Economic Partnership (RCEP) framework.