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Third Innings: Modi and Hasina Deepen India-Bangladesh Partnership

Introduction

On Saturday, June 28, 2024, Prime Minister Narendra Modi of India and Prime Minister Sheikh Hasina of Bangladesh held significant talks aimed at deepening the historic ties between their two nations. This meeting, which took place during Sheikh Hasina's two-day visit to India, marked a pivotal moment in the relationship between these South Asian neighbors. As the first guest on a bilateral State Visit following the formation of India's new government, Sheikh Hasina's presence underscored the importance both countries place on their partnership.


Prime Minister Narendra Modi with Prime Minister of Bangladesh Shekh Hasina | Praveen Jain | ThePrint


The Backdrop of Indo-Bangladesh Relations

The relationship between India and Bangladesh is rooted in shared history, particularly the 1971 War of Liberation in which India played a crucial role. Prime Minister Hasina acknowledged this historical connection, expressing gratitude for India's contribution to Bangladesh's independence. She stated, "India is our major neighbour and a trusted friend" and emphasized that Dhaka greatly values its relations with New Delhi, which were born in "our war of liberation in 1971."


The frequency of high-level interactions between the two leaders - having met ten times since 2019 - demonstrates the ongoing commitment to strengthening bilateral ties. This latest meeting builds upon this foundation, addressing a wide range of areas for cooperation and setting the stage for future collaborations.


Key Outcomes and Agreements

1. Green Partnership and Blue Economy:

India and Bangladesh finalized a shared vision for a "green partnership" and Blue Economy. This agreement reflects a mutual commitment to sustainable development and the responsible use of maritime resources.


Bangladesh PM Sheikh Hasina shaking hands with Narendra Modi. (Photo: PMO/File)


2. Digital Partnership:

Both nations agreed to enhance cooperation in the digital domain, recognizing the importance of technology in driving economic growth and innovation.


3. Railway Connectivity:

Agreements were signed to improve railway connectivity, which is crucial for enhancing trade and people-to-people contacts between the two countries.


4. E-Medical Visa Facility:

India announced the introduction of an e-medical visa facility for Bangladesh nationals seeking medical treatment in India. This move is expected to significantly ease the process for the estimated 20-30% of Bangladeshi visitors who come to India for healthcare purposes. In 2023, about 16 lakh visas were issued to people of Bangladesh, with a significant portion for medical treatment.


5. New Consulate in Rangpur:

India will open a new Assistant High Commission in Rangpur, Bangladesh. This will be the fifth such diplomatic establishment in Bangladesh, joining those in Rajshahi, Khulna, Chittagong, and Sylhet. The new consulate aims to facilitate services for people in Bangladesh's northwest region.


6. Comprehensive Economic Partnership Agreement (CEPA):

Both sides agreed to start talks on a Comprehensive Economic Partnership Agreement, focusing on enhancing economic ties. This decision recognizes Bangladesh's position as India's largest trade partner in South Asia and India's status as Bangladesh's second-largest trade partner in Asia. India is Bangladesh's largest export destination in Asia, with approximately $2 billion of Bangladeshi exports to India in FY 2022-23.


7. Indo-Pacific Cooperation:

Bangladesh's decision to join the Indo-Pacific Oceans Initiative was welcomed by India, signaling alignment on regional strategic issues. Prime Minister Modi stated, "Bangladesh lies at the confluence of our 'Neighbourhood First' policy, Act East Policy, Vision SAGAR and the Indo-Pacific Vision."


8. Ganga River Treaty and Teesta River Management:

The leaders decided to initiate technical-level talks for the renewal of the Ganga River treaty. Additionally, an Indian technical team will visit Bangladesh to review the protection and management of the Teesta River. This is particularly significant given Chinese interest in the Teesta River project.


9. Defense Cooperation:

Discussions were held on strengthening defense ties, including defense production and modernization of armed forces. Both nations agreed to enhance cooperation in counter-terrorism, addressing fundamentalism, and peaceful border management.


10. Space Cooperation:

The leaders highlighted the Bharat-Bangladesh Maitri Satellite as a symbol of their growing technological cooperation.


11. Trade in Indian Rupees:

Prime Minister Modi announced that India and Bangladesh have begun trading in Indian Rupees, a significant step in economic cooperation.


12. Energy Cooperation:

The export of electricity from Nepal to Bangladesh using the Indian grid was noted as an example of regional energy cooperation.


Strategic Imperatives

India's renewed strategic engagement with Bangladesh is shaped by four key imperatives. Firstly, recognizing the economic challenges faced by Bangladesh, as highlighted by the World Bank's April 2024 update, India is keen to support its neighbor's economic stability and growth. The World Bank report noted that Bangladesh's post-pandemic recovery continues to be disrupted by high inflation, a persistent balance of payments deficit, financial sector vulnerabilities, and global economic uncertainty.


Lastly, while not explicitly stated, India's comprehensive engagement with Bangladesh can be seen as an effort to maintain regional influence, particularly in light of growing Chinese interests in the region. By fostering strong ties with Bangladesh, India aims to ensure a balanced and stable regional dynamic.


Prime Minister Narendra Modi receives Bangladesh PM Sheikh Hasina for her ceremonial reception. (ANI)


Broader Implications

The agreements and discussions cover a wide range of areas, from traditional sectors like trade and defense to emerging fields like digital partnership and space cooperation. This comprehensive approach reflects the multifaceted nature of the India-Bangladesh relationship and its importance in the broader South Asian context.


The focus on connectivity, commerce, and collaboration aligns with both countries' development goals. Prime Minister Modi expressed confidence in realizing the visions of "Viksit Bharat 2047" and "Smart Bangladesh," while Prime Minister Hasina emphasized the alignment of these goals with Bangladesh's Vision 2041.


Prime Minister Modi reiterated India's commitment to realizing Bangabandhu's vision of a stable, prosperous, and progressive Bangladesh. He also announced that India and Bangladesh would continue their cooperation in other regional and international forums, including BIMSTEC.


Challenges and Future Prospects

While the talks and agreements paint a positive picture, challenges remain. The issue of water sharing, particularly regarding the Teesta River, remains a sensitive topic. The decision to send a technical team to Bangladesh for river management discussions indicates a willingness to address this long-standing issue.


The leaders also acknowledged the need to counter anti-India sentiments in Bangladesh. Indian Foreign Secretary Vinay Kwatra emphasized the importance of projecting the correct narrative of the relationship to the people of both countries, stating, "We need to work together as much as possible to essentially project correct narrative of the relationship to the people of the two countries... We do this because our relationship is historic...time-tested, deep rooted, and it is important for people to realise that such campaigns, which are done by (an) isolated minority of vested interests, are not factual...basically figments of imagination." The Rohingya issue was also discussed between the two sides, as it has been periodically at different levels of interaction.


Conclusion

The meeting between Prime Ministers Modi and Hasina marks a significant step forward in India-Bangladesh relations. The comprehensive nature of their discussions and the agreements signed reflect a deep commitment to strengthening ties across multiple domains. As both countries navigate the challenges of the 21st century, their partnership appears poised to play a crucial role in shaping the future of South Asia.


The emphasis on shared history, mutual respect, and common aspirations provides a strong foundation for continued cooperation and growth in the years to come. With agreements spanning economic partnerships, digital collaboration, defense cooperation, and environmental initiatives, India and Bangladesh are charting a course for a future marked by increased interdependence and mutual prosperity. As Prime Minister Hasina invited Prime Minister Modi to visit Bangladesh to further strengthen the friendly relations between the two countries, it is clear that both nations are committed to nurturing this vital partnership. The outcomes of this meeting not only benefit India and Bangladesh but also have the potential to positively impact the entire South Asian region, fostering stability, economic growth, and shared progress.


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