High Commission of India

Dhaka
***

INDIA-BANGLADESH RELATIONS

India’s links with Bangladesh, like with her other South Asian neighbours, are civilisational,
cultural, social and economic. There is much that unites the two countries – a shared history and
common heritage, linguistic and cultural ties, passion for music, literature and the arts; with
Bangladesh, India shares not only a common history of struggle for freedom and liberation but also
enduring feelings of both fraternal as well as familial ties. This commonality is reflected in multi-
dimensional relations with Bangladesh at several levels of interaction. High-level exchanges, visits
and meetings take place regularly alongside the wide ranging people-to-people interaction. India’s
Missions in Bangladesh issue about half a million visas every year and thousands of Bangladeshi
students study in India on self-financing basis and over 100 annual GOI scholarships. These
exchanges and interactions serve as an important adjunct to the official-level interaction. India’s
land border with Bangladesh – nearly 4,096 km – is the longest that India has with any of its
neighbours.

Recent High Level Contacts

2. Prime Minister of Bangladesh Sheikh Hasina accompanied by a 123-member delegation
that included Ministers of Foreign Affairs and Water Resources, Advisers and a 50-member strong
business contingent paid a State visit to India from January 10-13, 2010. The visit was very
successful and gave both countries a historic opportunity to build a new and forward looking
relationship. On January 12, 2010 Bangladesh Prime Minister Sheikh Hasina was conferred the
prestigious Indira Gandhi Prize for Peace, Disarmament and Development for 2009 at the
Rashtrapati Bhawan.

3. Three agreements on mutual legal assistance in criminal matters; transfer of sentenced

persons and combating international terrorism; organised crime and illegal drug trafficking; a
Memorandum of Understanding on cooperation in power sector and a cultural exchange
programme were signed. The Prime Ministers of the two countries agreed to put in place a
comprehensive framework of cooperation for development of the two countries based on their
mutually shared vision for the future. A Joint Communiqué issued during the visit outlined various
initiatives. Among others, India announced a line of credit of US$ 1 billion for a range of projects
pertaining to railway sector, procurement of buses and dredging of rivers. India agreed to supply
250 MW electricity from its grid and support Bangladesh in dredging of rivers. India agreed for
making Rohanpur-Singabad broad gauge railway link available for transit to Nepal. Both sides
agreed to declare Ashuganj and Silghat as ports of call; operationalise land customs stations at
Sabroom-Ramgarh and Demagiri-Thegamukh and organise border haats on a pilot basis at
selected areas.

4. After the new Government took office following General Elections in Bangladesh on
December 29, 2008, Shri Pranab Mukherjee, EAM paid an official visit to Dhaka on February 9,
2009. Two agreements on trade and bilateral investment promotion and protection were signed.
Shri Somnath Chatterjee, Hon’ble Speaker, Lok Sabha visited Dhaka from February 21-23, 2009
to address the Members of Bangladesh Parliament at the opening ceremony of ‘Parliamentary
Orientation Program for 9th Jatiya Sangsad’. Minister of State for External Affairs Smt. Preneet
Kaur met Bangladesh Foreign Minister Dr. Dipu Moni in New York in June 2009. Later Foreign
Minister Dr. Dipu Moni and Adviser to Bangladesh Prime Minister Mr. H. T. Imam met EAM and
Finance Minister on July 9, 2009 during a stopover in New Delhi and discussed a range of bilateral
issues.

5. Prime Minister Dr. Manmohan Singh had a bilateral meeting with Bangladesh Prime
Minister Sheikh Hasina on July 15, 2009 at Sharm El Sheikh (Egypt) on the sidelines of NAM
Summit. The two leaders discussed various issues of concern. Minister of State for External Affairs
Dr. Shashi Tharoor also had a meeting with Foreign Minister Dr. Dipu Moni. Bangladesh Foreign
Minister Dr. Dipu Moni paid an official visit to India from September 7-10, 2009. Several key
decisions in areas of water, connectivity, infrastructure development, power, trade, security and

1
land boundary were taken during the visit. Foreign Secretary Smt. Nirupama Rao visited Dhaka on
November 14-15, 2009 and held discussions with her Bangladesh counterpart.

Bilateral Trade
6. Bangladesh is an important trading partner for India. In FY 2008-2009, Bangladesh’s
imports from India were US$ 2.841 billion and exports to India were US $ 276.58 million. Total
bilateral trade in FY 2008-2009 stood at US $ 3.117 billion.

Trends in India-Bangladesh Merchandise Trade

(Figures in US $ million)
02-03 03-04 04-05 05-06 06-07 07-08 08-09

Bangladesh’s 84.08 89.27 144.20 241.96 289.42 358.08 276.58

exports to India
Bangladesh’s 1354.90 1599.40 2030.00 1864.70 2268.00 3364.00 2841.06
imports from India
Total trade 1439.10 1688.70 2174.20 2106.70 2557.40 3722.08 3117.64

(Source: Bangladesh Bank/EPB)

Institutional Framework for Facilitating Trade and Economic Cooperation

7. The first Trade Agreement between India and Bangladesh was signed in 1972. The India-
Bangladesh Trade Agreement has been renewed for a period of three years upto March 31, 2012.
It governs the present trading arrangements between the two countries. Other Agreements/MOUs
for facilitating trade and economic linkages include: (i) Protocol on Inland Water Transit and Trade
(IWTT); (ii) Bilateral Air Services Agreement between India and Bangladesh; (iii) Bilateral
Agreement on the Establishment of Joint Economic Commission (JEC); (iv) India-Bangladesh
Convention for the Avoidance of Double Taxation; (v) India-Bangladesh Agreement for the
Regulation of motor vehicle passenger traffic; (vi) Agreement on Revised Travel Arrangements
between India and Bangladesh; (vii) Rules for Interchange of Traffic between India and
Bangladesh; (viii) MOU between BIS and BSTI for cooperation in the area of standards; (ix) MOU
for cooperation in the field of agriculture; (x) MOU for cooperation in the field of science and
technology; (xi) Protocols for operation of passenger bus service between Dhaka & Kolkata, and
Dhaka and Agartala; (xii) Bilateral Investment Protection and Promotion Agreement (BIPPA).
Discussions are also underway for concluding agreement on regulation of passenger and cargo
vehicular traffic.

Trade Related Bilateral Forum

8. Trade related issues are discussed between the two Governments under following main
bilateral mechanisms, which meet periodically: (i) Joint Working Group on Trade (JWG); (ii) Joint
Group of Customs Officials (JGC); (iii) Protocol Renewal Committee and Standing Committee to
review implementation of Protocol on Inland Water Transit and Trade; (iv) Inter- Governmental
Railway Meeting; (v) Commerce Secretary Level Talks; (vi) Foreign Office Consultations; and (vi)
Joint Economic Commission (JEC) at the Ministerial level.

India’s Economic Assistance to Bangladesh

9. On the economic assistance side, India has stood by Bangladesh in its hour of need with
aid worth over Taka 250 crore (over US $ 37 million) to help it cope with natural disasters and
floods in 2007-08. India’s assistance included supply of 1,000 MT of skimmed milk powder, and
40,000 MT of rice. India is constructing 2,800 core shelters in the affected villages in Bagerhat
district in southern Bangladesh.

Technical Cooperation.
10. Bangladesh is an important ITEC partner country, and a number of participants from
Bangladesh have availed of training courses under the ITEC programme. India offers 100 slots
under ITEC and 35 slots under Technical Cooperation Scheme of Colombo Plan every year to
Bangladesh. In the last three years (2006-07 to 2008-09), 336 participants from Bangladesh have
undergone training in India under ITEC Programme and Technical Cooperation Scheme of
Colombo Plan.

2
Cultural Exchanges
11. Given the shared history and commonality of language, cultural exchanges form an
important bond of friendship between the people of two countries. Government has laid special
emphasis on promotion of exchanges in the fields of music, theatre, art, painting, books, etc. In
this context, Indian Council for Cultural Relations (ICCR) has been playing a prominent role by
sponsoring visits of artists from and to India. A bilateral Cultural Exchange Programme (CEP)
2009-2012 provides the framework for such exchanges. To promote bilateral cultural exchanges,
the Indira Gandhi Cultural Centre (IGCC) of Indian Council for Cultural Relations was inaugurated
at Dhaka on March 11, 2010 by President, ICCR Dr. Karan Singh.

12. In order to promote people to people exchanges, hundred (100) scholarships are being
granted by ICCR every year to students from Bangladesh for pursuing general courses in arts,
sciences, engineering and also specialised courses for culture, drama, music, fine arts and sports,
etc. During Bangladesh PM Sheikh Hasina’s visit in January 2010, India has offered to provide 300
more scholarships annually for five years to students from Bangladesh for studying and training in
Universities and training institutions in India.

*****

March 2010