A Relationship Worth Fixing
After a period of significant strain, Bangladesh and India are making a deliberate effort to reset their bilateral relationship. Diplomatic sources and officials on both sides have signaled a renewed focus on putting the Dhaka-Delhi partnership back on a constructive footing, with talks centering on trade, connectivity, water-sharing, and the broader regional stability that both countries depend on.
The relationship hit turbulence following the political transition in Bangladesh in mid-2024, when Sheikh Hasina’s government fell and an interim administration led by Nobel laureate Professor Muhammad Yunus took charge. India, which had maintained close ties with the Hasina government over more than a decade, found itself navigating an unfamiliar diplomatic landscape. Tensions simmered over a range of issues, from the treatment of minorities in Bangladesh to India’s continued hosting of Hasina after her departure, to longstanding disputes over water-sharing from shared rivers.
What Both Sides Stand to Gain
Despite the friction, the underlying logic of a strong Bangladesh-India relationship has not changed. The two countries share a 4,156-kilometer border, one of the longest land boundaries in the world. India is Bangladesh’s largest trading partner in South Asia, and Bangladesh is among India’s most significant export destinations in the region. Cross-border connectivity projects, including rail links, road corridors, and energy trade, have been years in the making and represent billions of dollars in mutual investment.
For Bangladesh, a stable and cooperative relationship with India is essential for continued economic growth. Indian investment flows into Bangladeshi industry, and the two countries have worked together on infrastructure that connects Bangladesh’s northeast-facing trade routes to Indian markets. For India, a friendly Bangladesh is a strategic anchor in a region where China has been steadily expanding its economic and diplomatic footprint. Bangladesh has deepened ties with Beijing in recent years, including in infrastructure financing, and Delhi is keenly aware of the implications.
The Diplomatic Push
Recent signals from both capitals suggest that the appetite for prolonged estrangement is limited. Indian officials have acknowledged the need to recalibrate their approach to Dhaka, and Bangladesh’s foreign policy establishment has consistently maintained that it seeks balanced, productive relationships with all major partners, including its giant neighbor to the west and north.
Key issues on the agenda include the Teesta River water-sharing agreement, which has been stalled for over a decade due to objections from the Indian state of West Bengal. Bangladesh has long pushed for a fair allocation of Teesta waters, which are critical for agriculture in the country’s northern districts. Progress on this front would be a significant confidence-building measure. Trade facilitation, the removal of non-tariff barriers that disadvantage Bangladeshi exporters, and the status of pending connectivity projects are also expected to feature prominently in any substantive diplomatic engagement.
A Broader Regional Context
The push to stabilize Dhaka-Delhi ties comes at a moment when South Asia’s geopolitical map is shifting. Bangladesh’s growing engagement with China, its active participation in multilateral forums, and its increasingly assertive foreign policy posture under the interim government have all added new dimensions to the bilateral equation. At the same time, India’s own strategic interests in keeping Bangladesh within a cooperative framework remain strong.
Observers note that both sides have more to gain from pragmatic engagement than from continued drift. The diplomatic groundwork being laid now, even if incremental, could set the tone for a more durable and balanced partnership, one that serves Bangladesh’s national interests while acknowledging the realities of geography, economics, and regional politics.