Context: The Bangladesh marks its liberation war victory day on December 16, it is a good time to look at India-Bangladesh ties.
Bangladesh is India’s largest trading partner in South Asia.
Between 2009-10 and 2015-16, the trade deficit grew in India’s favour at a staggering 164.4%.
FDI from India to Bangladesh is $3.11 billion, including Reliance’s $642-million 745 MW gas-fired project and Adani’s $400 million in Mirsarai Economic Zone.
Today, India and Bangladesh are better connected and goods are transported by road, rail and river routes using Bangladeshi vessels, trucks and railway.
Recent agreements allow India to ship goods through Mongla port road, rail, and water routes.
Issues
The border remains sensitive. 294 Bangladeshis were killed on the Indo-Bangla border.
Water remains another difficult issue. Bangladeshis have observed the tug-of-war on the Teesta water-sharing issue between the Centre and state.
India’s controversial Citizenship (Amendment) Act (CAA) and National Register of Citizens (NRC) have created a negative impression in Bangladesh of India’s intent.
Bangladesh is China’s second-largest arms export destination. Chinese firms have been outbidding their Indian counterparts in infrastructure projects.
Conclusion
If Indo-Bangla relations are to move to “newer heights”, then unresolved issues have to be dealt with soon.