Prime Minister Modi’s Visit to Bangladesh

Statement:

“The settlement of the maritime boundary dispute between India and Bangladesh in July 2014, and the Parliament’s unanimous vote to ratify the Land Boundary Agreement (LBA) in May 2015, have set India-Bangladesh relations on an upward trajectory. During Prime Minister Narendra Modi’s visit on 6 June 2015, he will explore a range of possibilities for further cooperation with his Bangladeshi counterpart Sheikh Hasina.

The multilayered India-Bangladesh relationship is based on a unique geography, and shared historical, and cultural linkages. Bangladesh is India’s largest trading partner in South Asia, although the trade deficit is heavily skewed in favour of India. The removal of 46 textile items from the ‘negative list’ of imports by India in 2012 was a good start, but India must be sensitive to Bangladesh’s concerns, and promote expanded imports from, and investment in Bangladesh.

Since Bangladesh shares a boundary with West Bengal and India’s Northeastern states, improved connectivity with and through Bangladesh—by the resumption and upgrade of rail and road infrastructure—will stimulate the economic development of India’s Northeast. In 2010, India had extended an $800 million concessional line of credit to Bangladesh, of which $687 million was allocated to railway projects.

The Motor Vehicles Act signed by Bangladesh, Bhutan, India and Nepal—possibly the most vibrant group within SAARC—in February, is crucial as it provides the quickest way for improved connectivity in the region. Of equal importance to Bangladesh—a lower riparian country—is progress in agreements on the sharing of water of the 54 common rivers.”