Sheikh Hasina’s Delhi visit as the first state guest on June 21 demonstrated the importance India attaches to its Neighborhood First Policy.  In a joint statement India acknowledged Bangladesh as a key partner at the convergence point of India’s "Neighbourhood First” policy, "Act East” policy, SAGAR doctrine and the Indo-Pacific vision, and called it  an indispensable partner in the development of India’s northeastern region.” The announcements made in the wake of Hasina’s visit produced two major takeaways: (i) Bangladesh’s eagerness to play a bigger strategic role in the strategic theater beyond South Asia; and (ii) its interest in cultivating multifaceted connectivity as well as stronger people to people ties at the subregional and bilateral level, to strengthen its neighbourhood policy.

The number of MOUs exchanged on June 21 strengthened India’s defence ties with Bangladesh in areas such as maritime security, ocean economy, space and telecommunications. Further, India welcomed Bangladesh’s interest in joining the Indo Pacific Ocean initiative and BRICS. In light of the developments, India and Bangladesh are expected to play a determining role towards regional and subregional integration under BIMSTEC, SAARC, and IORA for promoting the common interests of the Global South.

India Bangladesh Strategic Convergence

In April 2023, Bangladesh’s Ministry of Foreign Affairs released its first official document elaborating on Dhaka’s Indo-Pacific policy. The policy was a significant step towards Bangladesh’s strategic intent to engage with the region’s major powers. Amidst US–China competition in the Indo-Pacific, Dhaka has persistently maintained a balanced strategic approach in line with Article 25 of Bangladesh’s constitution which states that its foreign policy should be guided by the principles of non-interference, peaceful coexistence, respect for international law and norms and cooperation. Dhaka’s Indo Pacific policy commits to a free, open, inclusive, secure, and rules-based Indo-Pacific region. During PM Hasina’s India visit the two nations pledged to co-lead the Disaster Risk Reduction and Management pillar of the Indo-Pacific Oceans Initiative (IPOI) and cooperate to mitigate disaster risks in the region.

Bangladesh is India’s largest development partner in South Asia. The country’s commitment to peace and stability in the Indo Pacific amidst close ties with China implies its willingness to balance relationships with India and the US. Given its geography, it is an opportunity for India to have a like-minded democracy by its side to engage beyond its neighborhood, and both countries must not lose the momentum.

Emphasis on ‘Multifaceted Connectivity’ and People-to-People ties

The discussions during PM Hasina visit primarily centered around three aspects: connectivity, collaboration and commerce. The joint statement stressed on the converging tangent of ambition of both countries in realizing their  respective visions of "Viksit Bharat 2047” and "Smart Bangladesh Vision 2041”. The joint statement emphasised on the role of India and Bangladesh in intra-regional and sub-regional connectivity and collaboration. As part of India-Bangladesh sub-regional connectivity initiatives, India will extend transit facilities for movement of Bangladeshi goods to Nepal and Bhutan through the railway network. Both sides will also put in effort to operationalise the BBIN Motor Vehicle Agreement to promote sub-regional connectivity.  In order to facilitate greater mobility,  new MOU on Railway Connectivity as well as the decision to commence goods-train service from Gede-Darshana through Chilahati-Haldibari up to Hasimara via Dalgaon railhead (as and when operationalized) at the India-Bhutan border was concluded. Additionally, both sides resolved to facilitate intra-regional electricity trade, including competitively-priced power generated from clean energy projects in India, Nepal and Bhutan, through the Indian electricity grid. Incidentally, 40 megawatts of power from Nepal to Bangladesh will be sent via Indian grid.

Simultaneously, there were few significant announcements aimed at strengthening people-to-people ties  that included  new passenger and commercial  train service for bilateral and subregional connectivity initiatives, bus service between both countries,  e-visa for medical patients, commercial agreement between NPCI and Bangladesh Bank for the launch of UPI, promoting exchanges of Muktijoddhas, scholars, academics, artistes, tourists, students and youth, allocating training slots for Bangladeshi police officers, while also promoting youth development through education, skilling, entrepreneurship, technology, sports and creative and cultural industries.

The joint statement stressed on the role India and Bangladesh can play at the  regional and sub-regional level in the arena of power, transport, trade  and connectivity emphasising their mutual willingness to play a proactive role in steering forward regional development. In light of the emerging new security order, both sides resolved to bolster India Bangladesh digital and green partnership.

Both countries committed to strengthen trade ties as well. Bilateral trade between India and Bangladesh reached .9 billion in the financial year 2022-23. The decision for commencement of negotiations for a Comprehensive Economic Partnership Agreement (CEPA), and early operationalization of two Special Economic Zones offered by Bangladesh to India in Mongla and Mirsharai will further pave way for broader economic ties.

Way forward

India called its relations with Bangladesh “extraordinary” “all encompassing” and “transformational” in the joint statement following PM Hasina’s visit. The adopted document on Shared Vision for Future is expected to  provide impetus to strengthening India’s longstanding historic ties  with Bangladesh.

Meanwhile, India aims to pursue a seamless ‘future ready’ neighborhood policy it needs to settle internal differences while making international commitments. Further, in order to take forward a holistic growth agenda in bilateral ties both countries need to address issues such as territorial security and polarisation campaigns in Bangladesh against India.

Following the discussion  on the conservation and management of River Teesta and renewal of the 1996 Ganga Water Treaty by Modi and Hasina, the Chief Minister of West Bengal,  Mamata Banerjee raised the issue of “federal unity” after the centre made announcements on the conservation and management of the Teesta river in Bangladesh. Mamata Banerjee, who has long opposed the water-sharing pact, has blamed the Farakka barrage for erosion, siltation, and floods in the state. However, she clarified "I am not against Bangladesh. Personal relationship with Dhaka is also good. But I am the Chief Minister of West Bengal. I have to protect the interest of Bengal. Teesta river is one. You are taking a decision on a water reservoir in Bangladesh but without informing the West Bengal government. Is it federal unity?" In the wake of Chief Minister Mamata Banerjee’s statement, PM Sheikh Hasina refused to give any clear answer on India’s potential involvement in the project. Upon her return to Dhaka, PM Hasina stated that Bangladesh would accept the proposal that is most beneficial and acceptable in terms of the interests of its people. In a statement she noted, "We maintain our friendships based on the developmental needs of our country”.

PM Hasina’s visit was a success in giving a push to India’s Neighborhood first policy. The execution of the major announcements would need effort, commitment, and action from both sides.