India-Bangladesh Strengthen Ties: Focus on Defense, Economic Cooperation, and Regional Stability

During Bangladeshi Prime Minister Sheikh Hasina’s recent visit to India, both countries aimed to strengthen their defense ties and expand cooperation in various sectors, including maritime security, ocean economy, space, and telecommunications.

These agreements underscore India’s strategic effort to enhance its regional influence and position itself as a counterbalance to China. Prime Minister Narendra Modi welcomed Bangladesh’s decision to join India’s Indo-Pacific Oceans Initiative, emphasizing these deals as part of India’s ‘neighborhood-first’ policy.

Despite Bangladesh’s significant trade relations with China, particularly in raw materials crucial to its garment industry, the country navigates a delicate balance between Beijing, New Delhi, and Washington, China’s primary rivals.

Prime Minister Hasina’s visit highlighted efforts to deepen cooperation with India in river water sharing, power, and energy sectors, aiming to boost bilateral economic ties and infrastructure development. India has extended substantial financial support, loaning Bangladesh $8 billion over the past eight years to aid infrastructure expansion.

Since coming to power in 2009, Sheikh Hasina’s government has addressed Indian concerns regarding militant groups sheltering in Bangladesh, improving bilateral security cooperation.

However, challenges remain, including unresolved issues like the sharing of the River Teesta’s waters and concerns over illegal immigration from Bangladesh into India, which have strained relations over the years.

Economically, India is Bangladesh’s largest export destination in Asia, with bilateral trade reaching $15.9 billion in the financial year 2022-23. The trade relationship is characterized by India’s exports of goods like cotton, motor vehicles, and electrical equipment to Bangladesh, while it imports items such as cereals and cement from Bangladesh.

During her visit, Prime Minister Hasina also engaged Indian industry leaders, inviting them to invest in Bangladesh’s ambitious infrastructure projects aimed at enhancing connectivity through ports, waterways, rail, and roads.

Sheikh Hasina’s visit marked a significant step in India-Bangladesh relations, focusing on deepening economic ties, enhancing security cooperation, and addressing longstanding bilateral issues. The agreements signed reflect both countries’ strategic interests in regional stability and economic growth amid complex geopolitical dynamics in South Asia and the Indo-Pacific region.