India- Bangladesh: Celebrating 50 years of friendship bond

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India and Bangladesh are enjoying increasingly close relations, ever since the formation of then East Pakistan to People’s Republic of Bangladesh. But the onset of this relationship cemented at the battleground of 1971 war. 

In 1971, India won the war against Pakistan, that resulted in the birth of then state of the East Pakistan to People’s Republic of Bangladesh. Indian military forces exemplary courage during the 1971 war brought the opposition army to its knees, resulted as India’s greatest military victory.

The relationship between India and Bangladesh is anchored in history, culture, language and shared values of secularism, democracy, and multitude of other commonalities between the two countries

Also, immediately after the 1971 war, New Delhi entrenched the diplomatic connections with Dhaka. And was the first country to identify Bangladesh as a democratic state.

Bilateral Trade and Investment:

Bangladesh is India’s biggest trade partner in South Asia. India’s exports to Bangladesh in FY 2018-19 stood at US$ 9.21 bn and imports from Bangladesh during the same period were US$1.04 bn. In 2019-20, Bangladesh’s exports to India stood at US$ 1096.38 million and Bangladesh’s Import from India during the same period stood at US$ 5793.60 million.

Earlier in 2015, during Prime Minister Narendra Modi’s visit to Bangladesh, the trade agreement between India and Bangladesh was renewed for a period of five years with a provision for auto renewal.

Trade Route:
The movement of goods between India and Bangladesh by roads is operationalized through 48 Land Customs Stations (LCSs) and 2 Integrated Check Posts (ICPs) along the border. Government of India plans to upgrade 8 more of the existing LCSs into ICPs to boost bilateral trade and commerce.

India-Bangladesh CEO’s Forum:
To provide policy level inputs in various areas of trade and investment and facilitate exchanges among the business communities between both the countries, Prime Ministers Narendra Modi and Bangladesh PM Sheikh Hasina created an India-Bangladesh CEO’s Forum.

Border Management:

The longest land boundary that India shares with any of its neighbours is with Bangladesh. India and Bangladesh share 4096.7km of land border. Several boundary clashes had been erupted in past due to no proper border management. Activities like illegal migration, smuggling, and trans-border movement were the central concern of the border management.

Finding a solution out, both the countries signed the Coordinated Border Management Plan in 2011 aims to strengthen the efforts of both the forces for checking cross border illegal activities as well as for maintenance of peace along the India-Bangladesh border.

Several other conferences between BSF and BGB were also held regularly to discuss management and security of the India-Bangladesh land border.

Development Cooperation:

India has extended 3 Lines of Credits to Bangladesh in the last decade amounting to US$ 8 billion. Thus, Bangladesh has been the largest recipient of LOC funds from India so far

When Prime Minister of Bangladesh paid a visit to India in January 2010, India had announced a US$1 billion Line of Credit (LOC) for Bangladesh covering projects in public transportation, roads, railways, bridges and inland waterways etc. The second LOC of US$ 2 billion was extended to Bangladesh when PM Modi visited the neighboring country in 2015. This LOC covers 15 projects in areas of Roads, Railways, Power, Shipping, SEZs, Health & Medical Care and Technical Education. The third LOC of US$ 4.5 was extended to Bangladesh in 2017 during the visit of Bangladesh PM to India.

The new LOC will cover projects in areas of Port Construction, Railways, Roads, Airports, Power & Energy, Telecommunications, and Shipping etc. Government of India also facilitates grant assistance to Bangladesh for projects under ‘Aid to Bangladesh’. Three Sustainable Development Projects (SDPs) are currently under process in the cities of Rajshahi, Khulna and Sylhet.