Daily News Analysis

India–Bangladesh Relations

stylish_lining

Why in News?

More than 100 days have passed since Tarique Rahman’s BNP government assumed office in Bangladesh. Despite expectations of a fresh beginning, India–Bangladesh relations remain strained, with unresolved issues relating to trade, visas, water sharing, immigration, and regional geopolitics continuing to hamper bilateral ties.

Overview

India and Bangladesh share a historic, strategic, economic, and cultural partnership, making Bangladesh one of India's most important neighbours under the Neighbourhood First Policy and the Act East Policy. However, the political transition in Bangladesh has not translated into an improvement in bilateral relations. Although India has undertaken several diplomatic outreach initiatives, Bangladesh believes these gestures have not been matched by substantive policy changes, leading to a widening trust deficit.

India’s Diplomatic Outreach Towards Bangladesh

High-Level Engagement

Even before Tarique Rahman formally assumed office, India attempted to demonstrate goodwill through a series of diplomatic initiatives. External Affairs Minister S. Jaishankar visited Dhaka in December 2025 to convey condolences following the demise of former Prime Minister Khaleda Zia. Subsequently, Foreign Secretary Vikram Misri delivered Prime Minister Narendra Modi’s invitation to the new leadership, while Lok Sabha Speaker Om Birla attended Rahman’s swearing-in ceremony on 17 February 2026.

These engagements reflected India's willingness to maintain diplomatic continuity despite political changes in Bangladesh.

Why Bangladesh Remains Dissatisfied

Perception of Symbolic Rather Than Substantive Diplomacy

Although Bangladesh appreciated India's diplomatic gestures, the BNP leadership viewed them largely as symbolic. Dhaka expected India to reverse several restrictive measures imposed during the previous Muhammad Yunus-led interim government, but these expectations have remained largely unfulfilled.

As a result, Bangladesh believes that India has not provided sufficient political space for the new government to strengthen bilateral relations while managing domestic political pressures.

Major Issues Creating Bilateral Tensions

Trade Restrictions

Bangladesh seeks the restoration of transhipment facilities through India and the removal of trade restrictions affecting Bangladeshi exports. It argues that greater market access would strengthen bilateral economic integration and reduce trade imbalances.

Visa Restrictions

Dhaka has requested the full restoration of business and medical visas, which were curtailed during the political uncertainty of recent years. Limited visa access has adversely affected trade, tourism, healthcare, education, and people-to-people exchanges.

Ganga Water Treaty

  • One of the most sensitive bilateral issues remains the 1996 Ganga Water Treaty, which is scheduled to expire on 31 December 2026.

  • Bangladesh considers the timely renewal of the treaty essential because millions of people depend on Ganga waters for irrigation, agriculture, and drinking purposes. Delays could threaten projects such as the Ganges–Kobadak Irrigation Project, disrupt agricultural cycles, and worsen existing water shortages.

  • The treaty has therefore become both an economic necessity and a politically sensitive issue for the Rahman government.

Immigration Narrative

  • The BNP government made a notable diplomatic concession by publicly stating that Sheikh Hasina’s continued stay in India would not become an obstacle to restoring bilateral relations.

  • However, India continued to emphasise concerns regarding illegal immigration from Bangladesh, particularly after elections in West Bengal and Assam. Bangladeshi officials expected this rhetoric to soften after the elections but instead perceived India's continued emphasis on illegal migration as a sign of diminished trust.

  • This has contributed significantly to the growing perception of political mistrust between the two countries.

Bangladesh’s Strategic Diversification

Increasing Engagement with China

  • Facing slow progress in relations with India, the Rahman government has reportedly intensified preparations for high-level visits to China and Malaysia.

  • This reflects Bangladesh's broader strategy of diversifying its foreign partnerships and reducing excessive dependence on any single country.

  • However, despite expanding relations with China, the United States, and other countries, India remains indispensable in one critical area—transboundary river water management. No external partner can replace India's role in sharing the waters of common rivers.

Domestic Challenges Facing Bangladesh

Economic and Social Pressures

  • The Rahman government is simultaneously dealing with several internal crises.

  • Bangladesh has experienced a serious measles outbreak resulting in the deaths of hundreds of infants, attracting criticism over public health management.

  • The country has also witnessed rising incidents of sexual violence and concerns regarding deteriorating law and order, which have persisted since the political unrest of August 2024.

  • Furthermore, a politically active Awami League, despite restrictions, continues to remain influential. Failure to secure the renewal of the Ganga Water Treaty could provide additional political opportunities to opposition forces.

Importance of Stable India–Bangladesh Relations

Strategic Importance for India

A stable Bangladesh is vital for India's North-East connectivity, border management, regional trade, and implementation of the Act East Policy.

Political instability in Bangladesh could adversely affect:

  • Border security

  • Counter-terrorism cooperation

  • Cross-border trade

  • Connectivity projects

  • Regional stability in South Asia

Therefore, maintaining constructive engagement with Bangladesh remains a strategic imperative for India.

Way Forward

Moving Beyond Symbolic Diplomacy

India and Bangladesh need to shift from symbolic diplomatic gestures towards practical policy measures. Restoring trade facilitation, expanding visa services, resolving water-sharing issues, and strengthening economic cooperation would significantly improve mutual trust.

Timely Renewal of the Ganga Water Treaty

Negotiations on the Ganga Water Treaty should be prioritised well before its expiry. A timely agreement would strengthen confidence, ensure water security, and demonstrate India's commitment to cooperative river basin management.

Strengthening Economic Integration

Both countries should deepen cooperation in trade, connectivity, energy, digital infrastructure, and supply chains. Greater economic interdependence can reduce political mistrust and create shared incentives for long-term stability.

Respecting Mutual Sensitivities

Both governments should avoid public rhetoric that fuels domestic political tensions. Sensitive issues such as illegal immigration and political asylum require careful diplomatic handling rather than public confrontation.

Conclusion

The change of government in Bangladesh has not automatically resolved longstanding bilateral concerns. While India has demonstrated diplomatic goodwill, Bangladesh continues to expect concrete policy actions relating to trade, visas, and water sharing. The approaching expiry of the 1996 Ganga Water Treaty provides both countries with an opportunity to rebuild confidence. A relationship founded on pragmatism, mutual respect, and sustained cooperation will remain essential for ensuring regional stability, economic prosperity, and strategic security in South Asia.


 


 

Rising Household Debt in India

India is witnessing a significant rise in household debt, while net financial savings have declined from their pandemic-era highs. This trend raises concerns about the sustainability of credit-dri
Share It

Bharat Maritime Insurance Pool (BMIP)

Why in the News? World Maritime Day 2026 was observed on 24 September 2026 under the theme “From Policy to Practice: Powering Maritime Excellence.” The theme highlights the importan
Share It

India’s Shift Towards Deterrence by Punishment

​Why in News? At DefCon 2026, India’s Defence Minister outlined a shift in the country’s national security doctrine. He cautioned against the “perimeter fallacy” and h
Share It

Swachh Vayu Sarvekshan 2026

Why in News? The Ministry of Environment, Forest and Climate Change (MoEFCC) organised Swachh Vayu Diwas 2026 on the occasion of the International Day of Clean Air for Blue Skies, observed annu
Share It

Decentralised Grain Storage Plan in the Cooperative Sector

Why in News? The Decentralised Grain Storage Plan in the Cooperative Sector has gained attention because of its progress in expanding local-level grain storage capacity and strengthening agricu
Share It

Geothermal Energy in India

Why in News? The Government of India’s push for geothermal energy development has brought renewed attention to India’s geothermal potential. This follows the notification of the Nat
Share It

National Medical Commission (NMC)

Why in News? The National Medical Commission (NMC) recently proposed a Unique Identification (UID) system for doctors, which would allow doctors to practise across India without requiring separ
Share It

India–Belgium Relations

Why in News? The Belgian Prime Minister’s September 2026 visit to India strengthened bilateral ties through the India–Belgium Joint Statement, the Investment Fast-Track Mechanism, a
Share It

Pichavaram Mangrove Forest

Why in News? A landmark ecological study has estimated the Total Economic Value (TEV) of Tamil Nadu’s Pichavaram Mangrove Forest at approximately ₹2,485.38 crore. The valuation highligh
Share It

UNEP “Limiting Overshoot” Report

Why in News? The United Nations Environment Programme (UNEP) has released a report titled “Limiting Overshoot: Navigating Exceedance of 1.5°C and Pathways Towards Return.” The r
Share It

Newsletter Subscription


ACQ IAS
ACQ IAS