How India Supports Bangladesh: A Comprehensive Overview of Economic and Strategic Cooperation



1. Economic Support and Trade

a. Trade and Commerce

  • Duty-Free Access: India grants duty-free and quota-free access to Bangladeshi goods under the South Asian Free Trade Area (SAFTA).

  • Major Trade Partner: India is one of Bangladesh’s largest trading partners. In 2022–2023, bilateral trade was worth over $18 billion.

  • Border Haats: Localized markets ("Border Haats") allow villagers from both sides to trade locally produced goods, promoting micro-economies in rural border areas.

b. Investment and Industrial Collaboration

  • Indian Investments: Indian companies have invested in power, telecom, pharmaceuticals, and textiles in Bangladesh.

  • Lines of Credit (LoC): India has extended $8 billion in Lines of Credit to Bangladesh, one of the largest recipients of Indian concessional finance globally.

  • Projects include railways, roads, ports, power transmission, and more.


2. Financial Assistance

  • India provides concessional loans and grants-in-aid for developmental projects.

  • Projects funded include:

    • Infrastructural developments (e.g., roads, bridges, power plants).

    • Educational and cultural institutions.

    • Healthcare development (e.g., building hospitals or supplying medical equipment).


3. Infrastructure and Connectivity

a. Transport Links

  • Restoration of old railway links (e.g., Kolkata–Dhaka–Agartala route).

  • Construction of India-Bangladesh Friendship Pipeline for diesel supply.

  • Enhancement of road connectivity for cross-border movement of goods and people.

b. Inland Waterways

  • Protocol on Inland Water Transit and Trade (PIWTT) allows Bangladesh to use Indian rivers and ports for cargo movement — mutually beneficial.


4. Power and Energy Cooperation

  • India supplies over 1,000 MW of electricity to Bangladesh.

  • Joint projects in power generation (e.g., Rampal coal-fired power plant).

  • Cooperation on renewable energy and transmission infrastructure.


5. Border Management and Security

  • India supports Bangladesh in counter-terrorism, intelligence sharing, and border security.

  • Both countries coordinate to curb illegal activities like human trafficking, smuggling, and terrorism.


6. Education and Capacity Building

  • Thousands of Bangladeshi students study in India on scholarships under ICCR and other programs.

  • India conducts training programs for Bangladeshi civil servants, police, and armed forces under the Indian Technical and Economic Cooperation (ITEC) program.


7. Health and Humanitarian Support

  • During the COVID-19 pandemic, India provided vaccines, medicines, PPE kits, and medical aid under the Vaccine Maitri initiative.

  • Medical visas for Bangladeshis to access treatment in Indian hospitals.


8. Cultural and People-to-People Ties

  • Celebration of Mujib Borsho (birth centenary of Sheikh Mujibur Rahman) saw high-level engagements.

  • Common cultural heritage through language, music, religion, and literature.

  • Support for building libraries, language centers, and memorials in Bangladesh.


9. Water and Environmental Cooperation

  • Joint management of common rivers, like the Ganga and Teesta (though Teesta agreement is still pending).

  • Cooperation on climate resilience, environmental monitoring, and flood forecasting.


10. Diplomatic Support

  • India strongly supported Bangladesh’s independence in 1971 and continues to advocate for its development in international forums.

  • Backing Bangladesh’s candidature in UN bodies and global platforms.

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