The bilateral transformation

The bilateral transformation

News:

Sheikh Hasina secured third consecutive term with a landslide victory in Bangladesh’s national election.

Important Facts:

Why was this election important?

  • Bangladesh is a Muslim-majority nation of more than 160 million people and faces issues ranging from possibly devastating climate change, Islamist militancy, endemic poverty and corruption.
  • The country has recently been in the international spotlight as hundreds of thousands of Rohingya Muslims have fled there from neighboring Myanmar.
  • The lead-up to the election saw violence between rival supporters and a crackdown on dissent by a government.
  • Sheikh Hasina’s Awami League (AL) is however credited with overseeing rapid economic growth and social development, especially in rural areas.
  • Bangladesh is India’s largest trading partner in South Asia with an annual turnover of around $9 billion plus an estimated informal trade of around $8-9 billion

Recent Trends in India Bangladesh Relations

  • Bangladesh-India engagement has intensified in the areas of Cooperation in connectivity, energy, security and intelligence matters in last decade.
  • India’s ‘neighbourhood policy’ has focused on Bangladesh, through India’s ‘Act East Policy’ and sub-regional groupings like BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) and the BBIN (Bangladesh, Bhutan, India, Nepal) Initiative.
  • Bangladesh too with denial of support to Indian insurgent groups and insurgent leaders handed over to India, has established the deep trust with India.
  • The Padma multipurpose bridge and the Akhaura-Agartala rail link will change enhance connectivity within Bangladesh and with India.
  • Bangladesh has provided cyber connectivity between the international gateway at Cox’s Bazar to Agartala for faster Internet connectivity in India’s northeastern States.
  • India has also become a partner in Bangladesh’s nuclear power programme, with the beginning of construction at the Rooppur nuclear power plant.
  • To promote more Bangladeshi exports to flow into India, duty free entry was granted in 2011 under the South Asian Free Trade Area.
  • An SEZ in Bangladesh for Indian manufacturing companies has been mooted and notified.
  • India has granted Bangladesh generous lines of credit (LoCs) and grants mainly for infrastructure and connectivity projects, grants flow into social sector development.
  • The visa regime and norms has been liberalized to enhance people to people engagement.
  • India has launched Dhaka-Khulna-Kolkata bus and Khulna-Kolkata Bandhan Express services in 2017 and end-to-end customs and immigration services for Dhaka-Kolkata Maitree Express to ease people to people movement.

Challenges ahead

  • Current Rohingya issue has imposed a huge economic and security burden on Bangladesh and may be a set-back for India-Bangladesh relationship.
  • The issue of illegal migration has already a challenge in India with the publication of the draft National Register of Citizens in Assam.
  • Sharing of Teesta river waters will remain a challenge.
  • China’s security and economic footprint has grown in South Asia and managing this will remain a challenge for both countries.
  • Beijing is strengthening its strategic, defence, economic and trade cooperation with Dhaka. Among other defence hardware, Bangladesh also received its first ever submarines from China and to balance momentum move India’s announced $500 million line of credit for military hardware purchase.

Way Forward:

  • More prominent local collaboration, particularly in the field of financial improvement to destroy the neediness trap, might be a definitive objective of every single South Asian.
  • The trade volume of $6.5 billion is impressive but of this, Bangladesh’s exports to India account for a mere $500 million. India needs to narrow the gap. India’s plans to invest more in Bangladesh need to be speeded up
  • India and Bangladesh share a 4,096-km border. Since 2009, Dhaka has been helping India crack down on northeastern militant groups. Bangladesh has also raised its concerns about certain groups using Indian territory against it. Building on the momentum in ties will help foster better security ties between the two sides.
  • Even after 18 years, the Teesta water-sharing pact is far from being sealed despite the two countries agreeing on a 50:50 formula in 2011. Water is a state subject in India and without West Bengal signing up, the Teesta water pact cannot be sealed. With the two countries sharing the waters of 54 rivers, reassurance on water-sharing is necessary.
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