India-Bangladesh bonding is growing stronger day by day and has entered into a “golden period” (সোনালী অধ্যায়). The Hon’ble Prime Minister of Bangladesh, graciously accepted the invitation from her Indian counterpart and attended the G20 Summit as India’s special guest during September 9-10, 2023. In this background, on September 8, the Prime Ministers of the two countries held discussions on themes related to broadening bilateral cooperation, connectivity and deepening business ties. At the G20 presidency this year, India is following the custom of inviting non-member countries to the Summit. Singapore, Spain, Netherlands, Nigeria, Oman, Egypt, Mauritius and the United Arab Emirates (UAE) have also been invited, making Bangladesh the only South Asian country on India’s guest list. India’s decision to invite Bangladesh as the region’s only South Asian invitee demonstrates how highly it regards its close eastern neighbour.

At present, India is Bangladesh’s second-largest trading partner and its biggest export market in Asia while Bangladesh is India’s largest trading partner in South Asia. Bangladesh, strategically located between West Bengal and the Northeast region of India provides India with trouble-free entry to its mainland area. Also, Bangladesh’s geographical location connects South Asia and Southeast Asia. It gives India the power to establish a regional hub, connecting Nepal, Bhutan, Myanmar, and China via land and sea. The Northeastern states of Assam and Tripura in India would benefit from the use of the Chattogram and Mongla ports. To facilitate transportation more, initiatives like the Maitri Setu (bridge) built across the Feni River, Padma Setu have been taken up. In terms of rail connectivity, the Mitali Express runs from New Jalpaiguri in Northern West Bengal to Dhaka in Bangladesh and also, the Akhaura-Agartala train line is expected to open in September 2023.

India is focused on strengthening ties with its eastern neighbors in order to promote its Indo-Pacific aspirations and preserve its dominance in the Bay of Bengal region. Bangladesh is a central pillar in India’s “Neighborhood First and Act East Policies”. Of late, India has felt an extra push to strengthen its ties with Bangladesh, opening up new avenues for partnership as China has included Bangladesh in its Belt and Road Initiative (BRI) and has enormously invested in Bangladesh’s extension of duty-free access to most goods of the country. Besides cooperation on the trade front, transportation infrastructure and multilateralism, it is interesting to note that some of the most recent areas of collaboration between India and Bangladesh are in line with the G20 priorities for India, which goes as follows.

Climate change and renewable energy transition has been recognized as a common concern. India and Bangladesh have expanded their partnership in the energy business in recent years, with projects such as the Friendship Pipeline and the Maitree Super Thermal Power Project, among others. The climate change issue has a special focus on the Sunderban region. In their recent bilateral talks on the sidelines of the G20 Summit in New Delhi, three (MoUs) have been signed. With regards to the development of Digital Public Infrastructures (DPIs) and the strengthening of cyber security, the first MoU on cooperation in the Digital Payment mechanism was signed between the National Payments Corporation of India (NPCI) and Bangladesh Bank. The next one focused on the renewal of the India and Bangladesh Cultural Exchange Program (CEP) for 2023-2025. And, the third MoU was signed between the Indian Council of Agricultural Research (ICAR) and the Bangladesh Agriculture Research Council (BARC). Bangladesh has also been an outstanding security partner for India due to its “zero-tolerance” policy to terrorism. Bangladesh has done a commendable job in handling insurgents from separatist militant groups in Northeast India.

India’s main agenda in the G20 is to push for a reformed form of international cooperation representing the “Global South”. It is, thus, critical for India that Bangladesh, a member of numerous regional multilateral organisations in India’s neighborhood such as SAARC, BIMSTEC, and IORA, supports India’s G20 goals so that India’s G20 agenda can have an impact on these regional platforms lending credibility to India’s presidency.

South Asia holds the key to the global economy’s future. In this regard, India and China have marched ahead. However, the true realization of South Asia’s economic potential will come through the global economic ascent of countries like Bangladesh. Bangladesh has been playing a crucial role in the leadership of the LDC states. Through the G20, Bangladesh has now got the chance to take that role a step further. As one of the world’s fastest-growing economies, Bangladesh will become even more important to India in the future.