India-Bangladesh: A Shared vision
Source: Indianexpress
For Prelims: Current events of national and international importance
For Mains: GS-II: India and its neighbourhood- relations
Highlights of the Article
India-Bangladesh bilateral relations
Comprehensive economic partnership agreement (CEPA)
Economic Ties between India and Bangladesh
Context:
Prime Ministers Sheikh Hasina and Narendra Modi have been relentless in advancing the bilateral relations between Delhi and Dhaka over the last decade and turning India and Bangladesh into valuable partners of each other.
UPSC EXAM NOTES ANALYSIS
1. India- Bangladesh relation
- The genesis of India's relationship with Bangladesh traces back to the 1971 Bangladesh Liberation War when India played a crucial role in providing military and material support for Bangladesh's fight for independence from Pakistan.
- However, in the aftermath, relations faced challenges as military regimes took control, leading to a rise in anti-India sentiment in the mid-1970s.
- Issues such as boundary disputes, insurgency, and water-sharing disputes contributed to the strained ties.
- The situation persisted for several decades until Sheikh Hasina assumed power in 1996, ushering in a new era in bilateral relations.
- Under her leadership, a significant milestone was reached with the signing of a treaty on the sharing of Ganga waters.
- Since then, India and Bangladesh have successfully fostered cooperation in various areas, including trade, energy, infrastructure, connectivity, and defence.
2. India- Bangladesh Economic Ties
- Over the past decade, bilateral trade between India and Bangladesh has demonstrated consistent growth.
- Bangladesh has emerged as India's largest trade partner in South Asia, with bilateral trade surging from $10.8 billion in 2020-21 to $18 billion in 2021-2022.
- However, a slight dip occurred in 2022-23 due to the impact of the pandemic and the Russia-Ukraine war.
- In return, India stands as Bangladesh's second-largest trade partner, with exports amounting to $2 billion in the Indian markets.
- In 2022, both countries successfully concluded a joint feasibility study on a Comprehensive Economic Partnership Agreement (CEPA).
- This agreement, designed to reduce or eliminate customs duties on traded goods and streamline trade norms, is expected to unlock broader social and economic opportunities.
- The CEPA gains added significance as Bangladesh is poised to lose its Least Developed Country (LDC) status after 2026, thereby forfeiting its duty-free and quota-free market access in India.
- Dhaka is keen to finalize a Free Trade Agreement (FTA) with New Delhi and simultaneously pursue the China-backed Regional Comprehensive Economic Partnership (RCEP). This dual-track approach raises concerns for India.
3.India's Infrastructural Investments in Bangladesh
- As a significant development partner for Bangladesh, India has been actively contributing to various infrastructure and connectivity projects.
- Since 2010, India has provided Lines of Credit totalling over $7 billion. A milestone in this collaboration was achieved last year when Prime Minister Modi and Sheikh Hasina inaugurated the Akhaura-Agartala rail link, connecting Bangladesh and the northeast through Tripura.
- This link grants India access to Chattogram and Mongla ports in Bangladesh, facilitating cargo movement and poised to stimulate small-scale industries while fostering the development of Assam and Tripura.
- In the energy sector, Bangladesh imports nearly 2,000 megawatts of electricity from India.
- The BIMSTEC Master Plan for Transport Connectivity is instrumental in connecting major transport projects in India, Bangladesh, Myanmar, and Thailand, thereby establishing a comprehensive shipping network.
- India's focus is likely to be on the Matarbari Port, situated approximately 100 km from Tripura, being developed by Bangladesh.
- This port will play a pivotal role in establishing a crucial industrial corridor, connecting Dhaka with the northeastern part of India.
4.Navigating Challenges in the India-Bangladesh Relationship
- Several points of tension mark the diplomatic landscape between India and Bangladesh.
- Foremost among them is the impending Teesta dispute, which holds a central position in the agenda of the Hasina-led government.
- This dispute revolves around the equitable sharing of Teesta's waters, with Bangladesh seeking a fair distribution.
- Another source of contention is the Rohingya issue. The Hasina government aims for the peaceful repatriation of Rohingyas to Myanmar, but talks with the military junta have proven unsuccessful thus far.
- Bangladesh seeks India's cooperation to influence Myanmar, but the Modi government, with ties to the junta, asserts its intention to deport Rohingyas from its mainland.
- Cross-border terrorism and infiltration pose additional threats to internal security. The rise of majoritarian forces adds complexity to the already intricate landscape.
- While violence against Muslims has increased in India in recent years, Prime Minister Hasina has consistently condemned these attacks and expressed dissatisfaction with comments by Indian leaders concerning "illegal" immigrants.
5.Global Influences on the India-Bangladesh Relationship
- The Awami League government under Sheikh Hasina has faced vocal criticism from the U.S., particularly concerning "democratic backsliding."
- In 2021, the Biden administration imposed sanctions on a Bangladeshi anti-crime and anti-terrorism task force, citing human rights violations.
- Tensions escalated further as the U.S. announced a policy to restrict visas for Bangladeshis deemed responsible for undermining the election process in the country. This external pressure has implications for the global ties of Bangladesh.
- Adding to India's concerns is the deepening relationship between Bangladesh and China, marked by substantial Chinese investments in infrastructure in recent years.
- According to the Chinese Ambassador to Bangladesh, China has undertaken the construction of 12 highways, 21 bridges, and 27 power and energy projects in Bangladesh.
- However, Prime Minister Hasina has asserted that her government is "very much careful" about its partnership with China.
6.Conclusion
Despite challenges, the India-Bangladesh relationship boasts strong potential for further growth. Open communication, constructive dialogue, and focus on shared interests are crucial for navigating the complexities and ensuring a prosperous future for both nations.
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