India-Bangladesh Relations: Historical Background, Relevance of Bangladesh to India, Challenges in Bilateral Relationship & UPSC PYQs

India and Bangladesh share a 4000 km long border, and it is important for the security and connectivity of the north-east. It is an important part of India’s Neighbourhood First policy and can help strengthen India’s Look East Policy. It is an important part of the SAARC, BIMSTEC, and BBIN initiatives and would ensure India’s interest in the region.  

This topic is important for the UPSC Civil Services Examination under General Studies Paper II (International Relations) and General Studies Paper III (Internal Security, Border Management, and Economic Development). It is frequently linked with issues such as border security, water sharing, connectivity projects, and regional geopolitics in the Indo-Pacific region.

India and Bangladesh Relations

“India has always stood for the prosperity of Bangladesh; we are a long-standing and trusted development partner of Bangladesh.” - Prime Minister Narendra Modi in 2017.

Historical Background:

The historical relationship between the two countries:

• Partition: The 1947 Partition of British India led to the creation of Pakistan, divided into West and East Pakistan (now Bangladesh).

• Discrimination: The imposition of Urdu as the state language and limited resources for East Pakistan fueled tensions and the Bengali Language Movement.

• Awami League's Victory: On 7 December 1970, Sheikh Mujibur Rahman’s Awami League won a landslide victory in East Pakistan’s first general election.

• Humanitarian Crisis: In 1971, Pakistan launched Operation Searchlight, leading to a brutal crackdown and a massive humanitarian crisis.

• Indian Support: India supported the Mukti Bahini (Bangladeshi resistance), aiding in Bangladesh’s independence struggle.

• Instrument of Surrender: On 16 December 1971, Pakistan's Lt Gen Niazi signed the Instrument of Surrender, leading to Bangladesh’s independence.

• Post-Independence: Sheikh Mujibur Rahman became Bangladesh's first leader. However, his death in 1975 led to a military coup.

• Sheikh Hasina’s Rule: Sheikh Hasina, daughter of Sheikh Mujib, led the Awami League to power in 2009, holding office until August 2024.

• Protests: Student protests erupted against a 30% quota in government jobs for descendants of freedom fighters, reflecting ongoing political tensions.

• New Government: Sheikh Hasina finally fled to India, where she was provided political asylum. A caretaker government was formed under the leadership of Muhammad Yunus. Since February 2026, Tarique Rahman has been serving as the Prime Minister of Bangladesh.

Relevance of Bangladesh to India:

The significance of Bangladesh for India is as follows:

Strategic Importance: 

• Border: India shares its longest land border with Bangladesh, stretching over 4,096 kilometers, significantly impacting India's border security.

• Resolving Border Disputes: The two countries signed a landmark Land Boundary Agreement (LBA) in 2015, resolving long-standing territorial and maritime disputes, including the exchange of enclaves.

• Water Sharing: They share 54 transboundary rivers, which require effective management for mutual benefit, ensuring both water security and regional cooperation.

• Border Security: The porous border between the two countries poses significant challenges, such as illegal migration, human trafficking, and drug smuggling, especially due to Bangladesh's proximity to the Golden Triangle.

• Connectivity of Northeastern States: Bangladesh can help in ending the geographical isolation of India’s northeastern states.

• Maritime Security: Both countries have resolved disputes related to the Exclusive Economic Zones (EEZ), helping in the smooth management of maritime resources.

  • Bangladesh's cooperation is essential for the safety and security of Sea Lanes of Communication (SLOCs), supporting the free flow of global maritime trade, which is critical for India’s economic and strategic interests in the Indo-Pacific region.

  • Bangladesh's involvement is crucial in advancing the Blue Economy and supporting India-led initiatives like SAGAR (Security and Growth for All in the Region), IPOI (Indo-Pacific Oceans Initiative), and IORA (Indian Ocean Rim Association), BIMSTEC, fostering sustainable maritime development and regional cooperation in the Indo-Pacific.

• Defence Partnership: Bangladesh was provided a USD 500 million Line of Credit to import defence-related items from India.

  • Military Exercises:

    • Army Exercises: Sampriti 

    • Naval Exercises: Bongosagar

    • Naval Exercises: Milan

• India and Bangladesh are also focusing on energy cooperation and multilateral collaboration. 

  • In 2018, Russia, Bangladesh, and India signed a memorandum of cooperation for the implementation of Bangladesh’s first nuclear power project, the Rooppur Nuclear Power Plant.

  • India and Bangladesh actively collaborate through regional multilateral platforms such as SAARC, BIMSTEC, and the Indian Ocean Rim Association (IORA) to strengthen cooperation and promote shared development.

Economic Relevance:

• Bilateral Trade: India–Bangladesh bilateral trade stood at approximately US$ 13.5 billion in FY 2024-25, making Bangladesh India's largest trading partner in the subcontinent."

• Large Market: India exports pharma, machines, and cotton, whereas Bangladesh exports garments, fish, and jute products.   

• Most Line of Credit: India is the leading investor in Bangladesh and has provided an approximately $8 billion line of credit. 

• Border Haats: India and Bangladesh established border haats to promote local and regional trade.

• Duty-Free Market Access: India has granted Bangladesh duty-free access to its market under the South Asian Free Trade Agreement (SAFTA).

• Key Areas of Investment: India has invested in the Mongla port, which serves northeastern States as well.

• India is working with Japan to develop the Matabari Deep Sea Port in Bangladesh by 2027.

• Bangladesh purchases around 2500 MW of electricity from India.

• Power Grid Integration: The India-Nepal-Bangladesh trilateral power agreement enables Nepal to export surplus electricity to Bangladesh through India. Under this agreement, India will facilitate the transmission of 40 MW of hydroelectricity from Nepal to Bangladesh in the first phase.

• Motor Vehicle Agreement (MVA) under the BBIN (Bangladesh, Bhutan, India, Nepal) initiative to provide seamless connectivity.

Connectivity / Infrastructure:

• Ports: India gained access to Chittagong (Chattogram) and Mongla Ports, facilitating transit to Northeast India.

• HIRA: HIRA means Highways, Information Ways (Digital connectivity), Railways, and Airways.

• Railways: Key railway projects such as the Agartala-Akhaura Rail Link, Belonia to Feni Link, and Haldibari-Chilahati Rail Link have been initiated, enhancing cross-border rail links.

• Trains: Bandhan Express (Kolkata to Khulna)

• Maitree Express (Dhaka to Kolkata)

• Mitali Express (New Jalpaiguri to Dhaka)

• Both countries are also working on Inland waterway connectivity.

• Siliguri–Parbatipur Pipeline India-Bangladesh Friendship Pipeline (IBFP) is the first cross-border energy pipeline between India and Bangladesh with a capacity to transport 1 million metric tons per annum (MMTPA) of High-Speed Diesel (HSD) to Bangladesh.

• Bus Services: In 2015, India and Bangladesh flagged off two bus services, Kolkata-Dhaka-Agartala and Dhaka-Shillong-Guwahati, which linked West Bengal to three North Eastern states of India via Bangladesh's capital, Dhaka.

Water Relations:

• Water Agreements Signed: Ganga water sharing agreement in 1996.

• Kushiyara River Pact regarding water sharing of the Kushiyara River.

• India-Bangladesh Friendship Bridge: In March 2021, the 1.9-km-long India-Bangladesh Friendship Bridge (Maitri Setu) over the Feni River was inaugurated.

• The bridge would immensely benefit Northeast India in trade matters as it would connect the Chittagong sea port just 100 km from Agartala.

Cultural Dimensions:

• India and Bangladesh share strong cultural connections, with cross-border exchanges in movies, music, and literature.

• Both countries celebrate the birth anniversaries of cultural icons like Kazi Nazrul Islam and Rabindranath Tagore. The influence of Rabindranath Sangeet is particularly significant in both nations.

• Medical Tourism: A significant portion of medical tourism in India comes from Bangladesh, as many Bangladeshis seek advanced medical treatment and care in India.

India-Bangladesh Issues / Challenges:

The recent issues in India-Bangladesh Relations are:

• China factor: China has significantly expanded its presence in Bangladesh through increased trade and economic dependence, raising concerns about the country potentially falling into a debt trap.

• Investments: China has also made strategic investments in critical infrastructure, including Chittagong and Payra Ports, as well as the Padma Bridge.

• Bangladesh is also part of China's Belt and Road Initiative (BRI), which has further complicated regional dynamics.

• Water-Sharing Issues: Water-sharing disputes between India and Bangladesh persist, particularly concerning the Teesta River, which is vital for Bangladesh's Rangpur region, often referred to as the country's "rice bowl."

• Other Concerns: There are also ongoing concerns regarding the Brahmaputra and the Farakka Barrage, which impact water flow into Bangladesh.

• Domestic Politics of Bangladesh: The political shift in Bangladesh, alongside the political asylum granted to Begum Sheikh Hasina in India, has led to increasing anti-India sentiment and attacks on minorities, fueling radicalization and support for groups like Jamaat-e-Islami. This has raised concerns over regional stability and security.

• Support of Pakistan: There has been growing collaboration between Bangladesh's political leaders and Pakistan’s ISI (Intelligence Service) and military, posing security risks for India.

• Border Insecurity: Following recent political changes in Bangladesh, there has been a rise in violence, infiltration, and anti-India activities, adding to regional instability and security challenges.

• Economic and Trade Related Issues: India and Bangladesh face a trade imbalance, with Bangladesh seeking greater duty-free access to Indian markets. 

• In FY24, Bangladesh’s trade deficit with India was $9.2 billion, down from $10.1 billion in FY23. In the first four months of FY24 alone, the deficit stood at $2.3 billion.

• India faces tariff barriers that hinder the smooth flow of its exports to Bangladesh.

• The new Bangladeshi government has adopted a more protectionist approach to various issues, further complicating trade relations.

• Illegal Migration: Illegal migration from Bangladesh to India—comprising both economic migrants and refugees- remains a pressing issue. This persistent influx places considerable pressure on resources and security in India’s border states. The situation has been further complicated by the entry of Rohingya refugees into India via Bangladesh.

• Drug Smuggling & Trafficking: Numerous incidents of cross-border drug smuggling and trafficking have been reported. 

• According to the latest annual report by the Narcotics Control Bureau (NCB), approximately 70% of illegal drugs smuggled into India are trafficked via sea routes through the Arabian Sea and the Bay of Bengal.

• The border areas also witness human trafficking, particularly of women and children, as well as the poaching and illegal trade of various animal and bird species.

• Delivery Deficit: Despite India's Lines of Credit (LOCs) and other support, project completion delays persist due to bureaucratic hurdles. This results in lengthy processes, hindering the timely implementation of development projects in Bangladesh.

• India over-promises and underdelivers.

Way Forward:

Measures to strengthen bilateral relations between the two countries are as follows:

• Resolving Water Disputes: Address the Teesta River dispute within a specific time frame to build trust.

• Enhancing Connectivity: Improve links through coastal shipping, railways, and road networks for better regional integration. India should focus on blue economy initiatives, along with technological, economic, and cultural strengths, to enhance engagement with Bangladesh.

• Ensuring Energy Security: Utilize the India-Bangladesh Friendship Pipeline to facilitate the smooth transfer of petroleum products.

• Strengthening Economic Ties: Implement the Comprehensive Economic Partnership Agreement (2018) to boost trade and economic cooperation.

UPSC Previous Year Questions 

Q. The protests in Shahbag Square in Dhaka in Bangladesh reveal a fundamental split in society between the nationalists and Islamic forces. What is its significance for India? [200 Words, 10 Marks].