In a goodwill gesture aimed at improving relations with its eastern neighbor, India will make available a line of credit of $1 billion to Bangladesh. This was announced during a three day visit by Bangladesh Prime Minister Sheikh Hasina to India. The two countries also signed agreements on mutual assistance in fighting terrorism, organized crime and drug trafficking. Ms Hasina assured the Indian Prime Minister that she would not allow Bangladesh to be used as a base for terrorist activities against India.
One of the highlights of the visit was the talks between Indian Railways Minister Mamata Banarjee and Ms Hasina about developing rail connectivity between the two countries. The Business Standard reports, “Among the proposals considered today includes a project to construct a railway link between Rohanpur and Singhabad to facilitate transit traffic from Bangladesh to Nepal through India. Railway ministry sources indicated that the ministry had no objections to opening the additional transit route to Bangladesh.” Another trans-Asian line connecting India-Bangladesh-Myanmar, and the strengthening of the revenue-generating Chittagong-Dhaka route were also among the projects discussed.
Increasing rail connectivity with Bangladesh could boost bilateral trade by making it cost efficient and lucrative. It would significantly reduce transportation costs, as containers between India and Bangladesh currently take a sea-route through Mumbai, located on India’s west coast. As one of the biggest powers in the region, it is in India’s interest to promote economic development in, and trade relations with Bangladesh. At present Bangladesh is one of the poorest countries in the world. China has been making advances towards both Bangladesh and Myanmar, and a strong Chinese influence to its east could undermine Indian security.
Though relations with Bangladesh have not been consistently cordial, the current Awami League government is seen to be in favor of developing better relations with India. This was clearly conveyed through the arrest, and transfer to India, of the chairman of the United Liberation Front of Assam (ULFA) by Bangladesh. Members of the separatist movement in the northeastern States of India are believed to frequently cross over into Bangladesh to plan and carry out their operations. India needs Bangladesh’s assistance in dealing with these separatist. It is particularly important now that China has being increasingly aggressive about its claims on the north-eastern state of Arunachal Pradesh. Good relations with Bangladesh are also important to deal with any Islamic fundamentalists/militants operating in the region.
Whether it is through economic assistance, or improving electricity supply and infrastructure in Bangladesh, India should take proactive steps to build beneficial long-term relations with Bangladesh. For them it might be a way of overcoming poverty and underdevelopment. For India, it is a matter of securing its eastern border.
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