India – Bangladesh Bilateral Relationship

What’s in today’s article?

• Why in the News?
• Brief Political History of Bangladesh
• India – Bangladesh Bilateral Relationship

Why in the News?

• India’s relationship with Bangladesh may have entered a phase of uncertainty after Bangladesh Prime Minister Sheikh Hasina resigned following weeks of violent demonstrations.
• The Army chief has declared that an interim government will now run the country.

Brief Political History of Bangladesh

• After the formation of Bangladesh in 1971, Awami League’s Sheikh Mujibur Rahman became the first Prime Minister of the country.
• However, in 1975, he was assassinated during a coup.
• 1975-1990:
  • The Bangladeshi military played a significant role, starting with Chief Justice Abu Sadat Mohammad Sayem's appointment as president in 1975, followed by a military junta.
  • Gen Ziaur Rahman became president in 1977 but was assassinated in 1981.
  • His successor, Abdus Sattar, was ousted in a 1982 coup led by Army Chief H M Ershad, who later resigned in 1990 due to mass unrest.
• Civilian Governments:
  • Khaleda Zia and Sheikh Hasina (daughter of Sheikh Mujibur Rahman) served non-consecutive terms, with an attempted coup in 1996.
  • Khaleda's term ended in unrest in 2006, leading to a military-influenced caretaker government until 2008.
• Post-2008 Stability:
  • After regaining power in 2008, Hasina ensured the army returned to barracks.
  • In 2010, the Supreme Court limited military interventions and reinforced secular principles in the constitution.

India – Bangladesh Bilateral Relationship

• India and Bangladesh share bonds of history, language, culture, and multitude of other commonalities.
• Historical Ties:
  • India's relationship with Bangladesh dates back to the 1971 Bangladesh Liberation War when India provided crucial military and material assistance to help Bangladesh gain independence from Pakistan.
  • However, the relationship deteriorated in the mid-1970s due to boundary disputes, insurgency, and water-sharing issues, especially after military regimes took control in Bangladesh.
  • Stability in bilateral relations was restored when Sheikh Hasina became Prime Minister in 1996, leading to the signing of the Ganga Water Sharing Treaty.
  • Since then, India and Bangladesh have strengthened their cooperation in various sectors, including trade, energy, infrastructure, connectivity, and defense.
• Economic and Commercial Ties:
  • Bangladesh is India’s 25th largest trading partner, with the size of the bilateral trade at $12.9 billion.
  • The trade is dominated by exports, with Bangladesh being India’s eighth largest export partner.
  • In FY24, India's exports to Bangladesh contracted 9.5 per cent to $11 billion. 
    • Bangladesh is also a key destination for Indian auto exports, alongside African and Latin American countries.
  • In 2022, both countries completed a joint feasibility study on a Comprehensive Economic Partnership Agreement (CEPA).
  • This agreement is crucial as Bangladesh will lose its Least Developed Country (LDC) status after 2026, which will impact its duty-free and quota-free access to Indian markets.
  • Consequently, Bangladesh aims to finalize a Free Trade Agreement (FTA) with India.
• Power and Energy:
  • Bangladesh imports 1160 MW of power from India.
  • Projects like the Maitree Super Thermal Power Plant and India-Bangladesh Friendship Pipeline are key initiatives.
  • India supports Bangladesh's energy sector through various partnerships.
• Development Partnership:
  • India has extended four Lines of Credit to Bangladesh amounting to USD 8 billion for infrastructure development.
  • High Impact Community Development Projects (HICDPs) are a significant part of India’s assistance, focusing on human resource development and capacity building.
• Cultural Cooperation:
  • Cultural exchanges are facilitated through the Indira Gandhi Cultural Centre and Indian Cultural Centre in Dhaka.
  • Programs in arts, dance, and language promote people-to-people contacts.
  • The Bangladesh Youth Delegation program attracts young talent to visit India.

Q1. How many countries are part of the BIMSTEC?

7 countries are members of Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). The member countries are India, Bhutan, Bangladesh, Myanmar, Thailand, Nepal, Sri Lanka.

Q2. What is the Indian Ocean Rim Association?

Indian Ocean Rim Association (IORA) is an intergovernmental organisation established to promote economic cooperation and regional integration among countries bordering the Indian Ocean.

Source: Explained: The 50-year-old relationship between India and Sheikh Hasina