Context: The first-ever container cargo from Kolkata via Bangladesh’s Chattogram port has reached Agartala, the External Affairs Ministry said on Thursday, terming it a “historic milestone” in the Indo-Bangladesh connectivity and economic partnership. Union minister Mansukh Mandaviya had last week flagged off the first trial container ship from Kolkata carrying cargo meant for Agartala that reached the city via the Chattogram port. India and Bangladesh have enhanced cooperation in shipping and inland water trade in the recent years. Under the Protocol on Inland Water Transit and Trade, in addition to the six existing Ports of Call, five more in each country have been added recently. A Port of Call is a place where a ship stops during a voyage to enable the loading and unloading of cargo.
Infrastructure connectivity

• First trial movement of a container ship carrying steel and pulses from Kolkata port to Bangladesh’s Chattogram port.
• This has been done under the Agreement on use of Chattogram and Mongla Ports for movement of India’s transit cargo through Bangladesh.
• Both India and Bangladesh had road, rail and water transit routes agreed in 1965 and 1980, which were revised over the years.
• This is the first time after 1965 that Bangladesh is allowing its ports to be used as a transit for cargo movement from any part of India to northeastern states.
• For the first time, the Indian Railways loads Special Parcel Train to Bangladesh carrying Dry Chillies from Reddipalem in Guntur District of Andhra Pradesh state.

Economic Co-operation

• Bangladesh is India’s biggest trade partner in South Asia.
• India’s exports to Bangladesh for financial year 2018-19 (April-March) stood at US $ 9.21 BN and imports from Bangladesh for the same period stood at US $ 1.22 BN.
• To gap the trade imbalance India has done various investments in Bangladesh and has given several Lines of credit for its infrastructural development.
• India is the source of maximum FDI investment in Bangladesh which stands more than $ 300 MN as of now.
• India has signed over 24 Memorandum of Understandings (MoU) with Bangladesh on almost every important sector of bilateral cooperation including security, trade, connectivity, energy, civil nuclear agreement, defence and transportation.

Infrastructure projects

• India has given $8 BN Line of Credit (LoC) for the construction of Akhaura-Agartala rail project which shortened the distance between Dhaka and Kolkata to 550 km from 1650 kms earlier.
• The railway line will provide a major boost to development and economy of Eastern Bangladesh and North Eastern India.
• The two nations are working jointly on the rehabilitation of Kulaura-Shahbazpur section of railway line which will provide direct rail connectivity to Karimganj district of Assam and other North Eastern states.
• India has launched Dhaka-Khulna-Kolkata bus and Khulna-Kolkata Bandhan Express services in 2017 and end-to-end customs and immigration services for Dhaka-Kolkata Maitri Express to provide transport, connectivity and people to people contact.

Cultural Exchanges

• India and Bangladesh share close historical, cultural and ethnic links.
• The India-Bangladesh Cultural Agreement covers a range of areas of cooperation including art and culture, mass-media, films and press, sports and youth activities, archaeology, museums, libraries and education activities.
• The objectives enshrined in the Cultural Agreement are realized through the Cultural Exchange Programmes between the nations enhancing people to people contacts.

Border Management

• India shares longest border of length 4,096 km with Bangladesh.  
• Bangladesh shares land borders with India to the west, north and the east and Myanmar to the east, whereas the Bay of Bengal lies to its south. 
• Indian states Assam, Tripura, Mizoram, Meghalaya, and West Bengal share the India-Bangladesh border. 
• The historic India-Bangladesh Land Boundary Agreement (LBA) came into force following the exchange of instruments of ratification in June 2015 under Modi and Hasina government, providing for exchange of enclaves between the two countries.
• This was a perfect example of amicable resolution of long standing boundary disputes between nations.

International organisations

• Focusing on the growth and needs of Bangladesh has been an important component of India’s ‘Neighbourhood Policy’.
• India and Bangladesh are the members of sub-regional groupings like BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) and the BBIN (Bangladesh, Bhutan, India, Nepal) Initiative and the South Asian Association for Regional Cooperation (SAARC).
• The two nations are also part of Indian Ocean Rim Association (IORA) working together in managing the crucial maritime region, and ensuring its stability which is also reflected in the Modi government’s SAGAR (Security and Growth for All in the Region) programme, which further aims to turn the region more inclusive.

Defence Co-operation

• India and Bangladesh share the historical legacy of cooperation and support during the Liberation War of 1971.
• The Joint exercises of Army (Exercise Sampriti) and Navy (Exercise Milan) take place between the two countries on annual basis for better military engagement.
• India extended a LoC of $500 million to Bangladesh for defence purchase from India.

Power Connectivity

• The countries have started cooperation on renewable energy, Solar power and nuclear power. India is providing Bangladesh technical assistance for the construction of the 2,400 MW Rooppur Nuclear Power Plant in Pabna, Bangladesh’s first nuclear plant which is expected to go into operation by 2020.
• Maitree Super Thermal Power Project of 1,320 MW at Rampal, Bangladesh is already progressing well.
• The nations are working on construction of 130 km Bangladesh-India Friendship Pipeline between Siliguri in West Bengal and Parbatipur in Dinajpur district, Bangladesh.
• The pipeline will supply around 400,000 tonnes diesel to Bangladesh annually.

Unresolved issues and irritants that remain

• Water sharing: Teesta River Agreement, Farakka barriage, Bangladesh objection to the construction of Tipaimukh dam on Barak river in Manipur.   
• Migrant’s issue: NRC exercise and perception that illegal migrants will be deported to Bangladesh. 
• Illegal activities along border: Cattle smuggling, trafficking, drugs dealing and fake currency. 
• India’s handling of Rohingya issue. 
• China factor: growing security and military relations, increasing investment of china in infrastructural projects in Bangladesh is cause of concern for India. Ex: Chittagong port. 
• Delivery deficit associated with Indian projects in Bangladesh. 

Road Ahead

• India and Bangladesh must manage their geo-political realities through friendship and collaborations. They should appreciate and balance regional political realities for the interest of the people and should not trade off long-term interests for short-term gains.
• Pluralism has been the strength of the Indian subcontinent so that should be kept in mind to be able to celebrate South Asia’s diversities in religion, ethnicity and language.
• India and Bangladesh share a great relationship, areas of concern remain which need to be looked into holistically and ratified as soon as possible so that “best of the best” of ties between the two neighbours can be sustained forever.
• Boosting our regional connectivity with Bangladesh not only strengthen bilateral relations but also provide impetus to India's Act-East Policy.