Present Context

•  Present ruling party ‘Awami League (AL)’ and its allies have won the 11th General elections recently held in Bangladesh.
•  Citizens are believed to have voted for economic progress and a secular polity.
•  Bangladesh’s GDP grew at a rate of 7.6% in the last quarter, making it one of the fastest growing economies in the world.

Why does this victory matter to India?

•  Under the rule of elected party ‘Awami League’, high-level Bangladesh-India engagement has been growing.
•  AL has taken many steps which have progressively built trust and confidence between the two countries.
•  Both countries have committed to upgrade relations across a comprehensive interface of ties.
• So, victory of ruling party is important from Indian perspective.

Which initiatives have been taken to improve ties?

•  Bangladesh has emerged as a key interlocutor in India’s ‘Act East Policy’ and sub-regional groupings like
•  Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)
•  Bangladesh, Bhutan, India, Nepal (BBIN) Initiative.
•  Bangladesh have denied the support to Indian insurgent groups and also have handed over insurgent leaders to India.
•  Bangladesh is India’s largest trading partner in South Asia with around $8-9 billion formal trade.
•  Cooperation in connectivity, energy, security, and intelligence matters has intensified.
•  The Padma multipurpose bridge and the Akhaura-Agartala rail link are being constructed for better connectivity with the North-East India.
•  Waterways are also being revived to reduce the cost of trade.
•  Bangladesh has provided cyber connectivity between the international gateway at Cox’s Bazar to Agartala for faster Internet connectivity in India’s north-eastern States.
•  India has become a partner in Bangladesh’s nuclear power programme, with the beginning of construction at the Rooppur nuclear power plant.
•  Duty-free entry was granted in 2011 to Bangladesh under the South Asian Free Trade Area to enable more Bangladeshi exports to flow into India.
•  Capacity building under the Indian Technical and Economic Cooperation programme is an important strand in bilateral ties and people-to-people interaction.
•  Bangladesh has taken strong and effective steps against those who have been inspired by the Islamic State and involved in terrorist strikes.
• Bangladeshis are among the largest groups of tourists into India. The visa regime has been liberalized and over a million visas are issued to Bangladeshi citizens annually.

Where the challenges lie?

•  The adverse balance of trade has been a bilateral issue. The asymmetry in the economies of India and Bangladesh is the major factor.
•  Issue of the illegal migration such as National Register of Citizens, Rohingya Muslims etc. are there.
•  China’s security and economic footprint has grown in South Asia.
•  Sharing of river waters e.g. Teesta agreement etc. has remained a challenge.

How to improve the situation?

•  India and Bangladesh must seize the opportunity to further enhance connectivity and trade ties.
•  India should intensify the momentum of providing support and aid to Bangladesh.
•  Issues related to illegal migration should be dealt with fine diplomacy.