Recent Development India Bangladesh Relations:-

Former PM Hasina’s unbroken tenure had brought political stability to

Bangladesh, contributing to a secure neighbourhood. Her government's
uncompromising 'zero tolerance' stance against the insurgent groups
sheltered in Bangladesh, which frequently caused disturbances in India’s
neighbouring Northeastern territories, particularly helped New Delhi.
However, PM Hasina’s recent exit which coincides with the resurgence of
extremist factions in Bangladesh, such as with the return of the once-
banned Jamaat-e-Islami to the political forefront, poses renewed
concerns for India over the security of the Northeast. Due to the civil
unrest that is now raging in Bangladesh, India has already sealed its
borders and the police and Border Security Force have increased security
with a 24/7 vigil. A high alert has been declared along the border to avoid
spillovers, as reports also arrive of violence against Hindu minorities who
may want to flee the country.

Impact on Commerce and Connectivity Initiatives

Former PM Hasina had endowed India with increased use of

Bangladesh’s Chattogram and Mongla ports to provide the Northeast
with a maritime outlet. Accordingly, India secured the operating rights to
a terminal in Mongla port in June 2024. It also funded the construction of
the Khulna-Mongla Port rail link, connecting the port to the rail network
in Khulna. This project aims to reduce logistical hurdles and cargo
transportation costs between West Bengal and the Northeast. However,
services are yet to begin on this route. Work on the Ashuganj Inland
Container Port in Bangladesh, developed with India’s help, has also
been suspended. Its completion would have facilitated the utility of the
recently inaugurated Akhaura-Agartala rail link, enhancing Tripura’s
trade with Bangladesh.

As such, commerce between India’s Northeast and Bangladesh has

reportedly declined since the regime change, with border closures, issues
with customs clearances, and increased security surveillance hindering
the smooth flow of goods between the two countries. India’s exports to
Bangladesh fell by 13.3 percent between April and October 2023, with
imports dipping by 2.3 percent. Fly ash exports via the Indo-Bangladesh
protocol route through Kolkata port also dipped by 15-25 percent during
the peak construction season. The once bustling Benapole-Petrapole land
ports at the India-Bangladesh border, which cater to nearly 30 percent of
bilateral trade, now witness significantly less traffic. The reduced activity
has severely impacted border-dependent livelihoods.

Impact On People to People Connectivity

People-to-people connectivity has also been impaired with the three

railway services—Maitree Express (Kolkata-Dhaka), Bandhan Express
(Kolkata-Khulna), and Mitali Express (Siliguri-Dhaka)—
being suspended since July 2024. Bus services and other public transport
remain unavailable, and private vehicles have been charging exorbitant
rates to cross the land border.

Other Implications

Bangladesh borders four Northeastern states of India,[3] offering the

landlocked region better land connectivity with the rest of India and
maritime access to the Bay of Bengal for improved overseas trade
opportunities. Multiple connectivity projects have been undertaken in the
past 15 years of partnership between the Government of India and the
Awami League administration in Bangladesh, often referred to as the
“Golden Chapter” in bilateral ties. India has emerged as Bangladesh’s
foremost development partner, with a development portfolio of US$8
billion. However, the regime change in Bangladesh in August 2024,
former Prime Minister Sheikh Hasina’s flight to India, and the
establishment of the interim government under Chief Advisor
Muhammad Yunus have dramatically altered bilateral ties. As relations
remain strained, with the anti-India rhetoric and Hasina’s extradition
dilemma heightening tensions, connectivity projects remain in limbo

Connectivity aside, in the past decade, India and Bangladesh have

collaborated across multiple domains, ranging
from energy and defence to health, climate change, and disaster
management. The enduring political stability in Dhaka had propelled
India, like many other countries, to invest in Bangladesh, through foreign
direct investments and aid, to tap into the country’s geostrategic position
in the Indo-Pacific. New Delhi has, therefore, been a part of Dhaka’s
economic boom in recent years, which the World Bank appreciated as its
“remarkable journey of poverty reduction and development.” However,
with the political situation altered in Bangladesh, speculations are rife
about the future of this developmental partnership. The Bangladesh
Nationalist Party (BNP)—the Opposition to the former Awami League
government known for discernibly being pro-China. It endorsed the anti-
India and ‘Boycott Indian goods’ campaign that had gripped Bangladesh
in recent months. The fine diplomatic balance that the Hasina
government had for so long retained in its engagements between India
and China, therefore, runs the risk of becoming askew in favour of
Beijing, a possibility that New Delhi must be cautious of as Bangladesh is
vital for its foreign policy aspirations.

The thriving bilateral ties with Bangladesh under PM Hasina's leadership

have contributed significantly to the success of India's ‘Neighbourhood
First’ and ‘Act East’ policies which complete a decade this year. Although
her departure draws the curtains on this ‘Golden Chapter’, the
unchanging geographical reality remains—Bangladesh will continue to
share a border with India, making them natural partners, bound together
by contiguous territories, cultural ties, and a common future. Therefore,
peaceful coexistence and collaboration between the two nations are
essential, as they navigate a new era in their relationship.

Developments Aftermaths

Governments in New Delhi and Dhaka need to find continuity in the

bilateral cooperation, essential for holistic economic development on
both sides of the border and for stabilising the rather tumultuous
geopolitical milieu in South Asia.

In the aftermath of the Bangladeshi coup, India closed the six major land
ports between India and Bangladesh, reinforced security presence along
the borders, and suspended rail connectivity indefinitely. However, weeks
later, the largest land port, connecting Petrapole (India) and Benapole
(Bangladesh) was reopened, to normalise trade. Economic
interdependence and multiple connectivity linkages were responsible for
this speedy return to normalcy. This incident symbolises a long-awaited
success for New Delhi in South Asia, marking the fruition of its efforts to
cultivate economic interdependencies and physical linkages in the region
to bolster overall regional stability and security. While economic and
infrastructure interconnectedness was not the only factor in swift
normalisation, it was a significant one. India’s ability to swiftly and
decisively restore bilateral trade with Bangladesh underlines the
importance that the country accords to its neighbourhood.

India’s role in economic development and regional growth has partly (yet
significantly) been cultivated by extensive connectivity projects across
the region. While national parties in other countries may instrumentalise
anti-India rhetoric to gain power, they still recognise the importance of
New Delhi’s various economic and physical linkages in regional
development. This is particularly true for Bangladesh, a country
that wishes for a developing country status in the UN by 2026 and needs
multiple development partnerships to achieve the same. Governments in
New Delhi and Dhaka need to find continuity in the bilateral cooperation,
essential for holistic economic development on both sides of the border
and for stabilising the rather tumultuous geopolitical milieu in South
Asia.

Diplomatic thaw

After six months of a turbulent bilateral relationship, news of the mutual

exchange of arrested fishermen between India and Bangladesh signals a
positive start to the new year. Between 3 January and 5 January, 90
Bangladeshi fishermen/crew members, and two fishing vessels “FV Laila-
2” and “FV Meghna-5” were repatriated to Bangladesh. In exchange, six
Indian fishing boats and 95 Indian fishermen and crew members,
previously detained in Bangladesh, were returned to India. The
collaborative exchange was facilitated by the coast guards of the two
countries, bearing diplomatic implications. Often in times of tension in
bilateral ties, cooperation on humanitarian issues serves as an icebreaker
for renewed engagement.

In recent months, a thaw has been witnessed in the ties between the two
South Asian nations, following a period of strain over the past year. The
Indian Foreign Secretary Vikram Misri’s visit to Bangladesh on 9
December 2024, marked the first of such diplomatic gestures. During the
visit, Misri held meetings with the Chief Adviser of the Interim
Government of Bangladesh, Muhammad Yunus; the Foreign Affairs
Adviser, Md. Touhid Hossain and held Foreign Office Consultations with
the Foreign Secretary of Bangladesh, Jashim Uddin. In addition to
discussions on a wide range of issues, including cooperation in water,
energy, and connectivity, the Foreign Secretary voiced “India’s
willingness to build a positive and constructive relationship with
Bangladesh, based on mutual trust and respect and mutual sensitivity to
each other’s concerns and interests.”

Although there has been no reciprocal visit from Dhaka yet, in a

recent press interview, Bangladesh’s Army Chief, General Waker-uz-
Zaman, emphasised Dhaka and New Delhi’s interdependence.
Accordingly, he stated, “…we will not do anything with our neighbour
that goes against their strategic interests. At the same time, we will
expect that our neighbour does nothing contrary to our interests.”
Against this background, the India-Bangladesh fishermen exchange has
been completed, highlighting not only a possibility of a potential thaw in
bilateral relations but also an area of cooperation that has been relatively
overlooked in the past.

Conclusion

New Delhi's position in the region requires constant effort. India's

influence and the region's development depend on its proactive
engagement with neighbouring countries. The largely untapped credit
line extended to Bangladesh presents both a challenge and an
opportunity. The interim government’s cautious approach in using India’s
credit lines could cost Bangladesh in its long-term developmental
trajectory

India’s Kaladan Multi-Modal Transit Transport Project (KMMTTP)

1. Overview

The Kaladan Multi-Modal Transit Transport Project (KMMTTP) is a

major India-Myanmar connectivity initiative aimed at providing an
alternative trade and transport route to India’s Northeast region via
Myanmar.

 Initiated: 2008

 Objective: To connect India’s Northeast (Mizoram) with Sittwe

Port in Myanmar through a combination of sea, river, and road
transport.

 Strategic Importance: Reduces dependence on the Siliguri

Corridor (Chicken’s Neck) and enhances India’s Act East
Policy.

2. Route & Components

1️⃣ Maritime Route:

 Kolkata Port (India) → Sittwe Port (Myanmar) (539 km by

sea)
  Sittwe Port was developed by India and became operational in
2023.

2️⃣ Inland Waterway (Kaladan River):

 Sittwe Port → Paletwa (Myanmar) (158 km by river

transport)

 Paletwa is an inland river terminal for cargo movement.

3️⃣ Road Transport:

 Paletwa → Zorinpui (Mizoram, India) (109 km by road)

 Zorinpui is the designated Indian entry point.

 A highway connecting Zorinpui to Lawngtlai and Aizawl is

under development.

3. Geopolitical & Strategic Importance

✔ Enhances Northeast Connectivity: Provides faster access to the

Bay of Bengal for Mizoram and the Northeast.
✔ Bypasses Chicken’s Neck: Reduces dependence on the Siliguri
Corridor, India’s narrow strategic passage to the Northeast.
✔ Strengthens India-Myanmar Relations: Improves bilateral trade
and regional cooperation.
✔ Supports Act East Policy & BIMSTEC: Enhances economic
integration with Southeast Asia.

4. Challenges & Delays

🔴 Security Issues:

 The Arakan Army (AA) controls major areas along the route and
disrupts logistics.

 Myanmar’s military junta vs. ethnic armed groups conflict

affects project stability.

🔴 Incomplete Road Links:

 The Paletwa-Zorinpui highway (109 km) is incomplete due to

legal and logistical hurdles.

 Land acquisition & infrastructure gaps in Mizoram delay full

operationalization.
🔴 Myanmar’s Political Instability:

 The 2021 military coup and ongoing conflicts have slowed project
execution.

🔴 Economic & Contractual Issues:

 India terminated previous construction contracts and reassigned

work to IRCON International.

5. Current Status (2024-25)

 Sittwe Port operational (2023) but faces security concerns.

 Paletwa-Zorinpui highway work resumed (2024) under new

contracts.

 Full completion still uncertain due to conflict and logistical

hurdles.

Conclusion

The KMMTTP is crucial for India’s regional connectivity but faces

security threats from insurgent groups, delays in road
construction, and instability in Myanmar. India’s continued
engagement with Myanmar’s junta, ethnic armed groups, and
regional partners is key to ensuring the project's success.

Recent Development In KMMTTP

The Arakan Army (AA) has seized control of most of Rakhine State
and key border points, posing risks to India’s Kaladan Multi-Modal
Transit Transport Project (KMMTTP) and regional connectivity plans.
Sittwe Port, operational since 2023, faces instability, while the Paletwa-
Zorinpui highway remains incomplete due to security and logistical
issues.

India’s Act East Policy and BIMSTEC initiatives rely on stable

connectivity with Myanmar, but ongoing conflicts, junta airstrikes, and
unresolved land disputes in Mizoram delay progress. Similarly, the India-
 Myanmar-Thailand Trilateral Highway (IMT-TH) faces setbacks due
to instability, ethnic tensions, and infrastructure gaps.

India is engaging with Myanmar’s junta, Ethnic Armed Organizations

(EAOs), and the National Unity Government (NUG) to mitigate risks.
However, the success of these projects depends on Myanmar’s stability
and India’s ability to navigate geopolitical complexities.

Joint Developments Project Between India and

Bangladesh

Sub- Year of
Project Status
sector Completion

SASEC 1000MW-HVDC Bangladesh India

Energy 2016 Completed
Electrical Grid Interconnection Project I

Transport Restoration of the Radhikapur-Birol rail link 2017 Completed

SASEC 500MW-HVDC Bangladesh India Electrical

Energy 2017 Completed
Grid Interconnection Project II

Transport Restoration of the Haldibari – Chilahati rail link 2020 Completed

Transport Restoration of the Gede-Darshana rail link 2021 Completed

Transport Restoration of the Petrapole-Benapole rail link 2022 Completed

Transport Akhaura-Agartala rail link I 2023 Completed*

Transport Khulna-Mongla Port Rail 2023 Completed

Energy Maitree Thermal Power Plant I, II 2023 Completed*

Energy India-Bangladesh Friendship Pipeline 2023 Completed

Under
Energy Rooppur Nuclear Plant I 2024 Constructio
n

Under
Katihar-Parbatipur-Bornagar 765 kV electricity
Energy 2025 Constructio
transmission line
n

Under
Energy Rooppur Nuclear Plant II 2027 Constructio
n

Digital ISRO-Bangladesh satellite launch N/A MoU signed

Digital 4G/5G connectivity projects by Indian companies N/A MoU signed

Total
number
of
Total projects: 16
sectors
covered:
3