Under The Shadow Of Western Disturbances, India-Bangladesh Friendship Falters
The unfolding geo-political situation has made the India-Bangladesh bilateral relations more strained than ever before in the past decade
In addition to that, a subtle but strategic prodding from the exiled Awami League leadership throws emerging complex questions—Is Bangladesh’s interim regime testing how far it can push India before ties rupture completely? Or Is India done with addressing Bangladesh as the ‘friendly’ neighbour?
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Even as foreign policy experts and senior diplomats who served in Bangladesh weigh in, it appears that the unfolding geo-political situation has made the India-Bangladesh bilateral relations more strained than ever before in the past decade. Many see the bilateral trade-related actions by Indian government as moves “laden with economic and geopolitical implications".
Signs Of ‘Strained’ Relations
A senior diplomat, who served in Bangladesh, said: “The trade relations between India and Bangladesh are not just about economic interests. It is crucial for South-East Asia’s stability and unity. This also leads to progress and development for both nations. However, the interim government in Bangladesh has been taking certain policy decisions and supporting an international narrative which is not conducive to stable bilateral relations."
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He added: “Despite knowing that there would be repercussions across the border, Bangladesh continued to meddle with India’s sensitive and strategic boundaries. The Yunus-led government also ignored Prime Minister Narendra Modi’s suggestions of not bringing up north-east corridors as part of their speeches. India then chose to make some changes following those instances. The recent decisions are not trading friction in isolation. They are calibrated and well-thought policy decisions."
Beyond Trade, Ties Fraying Fast
Apart from trade ties, India and Bangladesh witnessed multiple collaborations on several fronts, including power, railways, and culture. According to a ministry of commerce document, the 15th meeting of the Joint Working Group on Trade (JWG) between India and Bangladesh took place on September 26 and 27, 2023, in Dhaka.
“The discussions covered a range of bilateral issues, including the elimination of port restrictions, preparations for the initiation of the Comprehensive Economic Partnership Agreement (CEPA), standard harmonisation, mutual recognition of standards, the supply of essential commodities to Bangladesh, the enhancement of road and rail infrastructure, regional connectivity through multi-modal transportation, and the establishment and strengthening of infrastructure in Land Customs Stations and Integrated Check Posts, border Haats and so one," said a review report by the IBEF.
However, since the fall of Sheikh Hasina’s regime, all such efforts are now almost suspended. Senior diplomats said the foreign policy decisions would remain “unpredictable" until the country elects its government.
In April 2023, India and Bangladesh also agreed to settle a part of the bilateral trade transactions in their own currencies—Rupee and Taka—to ease pressure on dollar holdings. Indian Railways, under grant assistance from the government of India, handed over 20 Broad Gauge (BG) diesel locomotives to Bangladesh, fulfilling an important earlier commitment.
All such collaborations and goodwill movements are now almost on hold following the Bangladesh interim government’s decisions.
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