During the visit, both the countries signed MoU for cooperation in the areas of Digital, Green, and Blue Economy, Small Satellite Project, etc.
Importance of Bangladesh for India
- Geographic proximity
- India shares its longest land border with Bangladesh, making it crucial for preventing cross-border terrorism, human trafficking, and illicit trade.
- Bangladesh provides India's Northeastern states with easier access to the rest of the country and the Indian Ocean.
- For example, Akhaura (Bangladesh)-Agartala (Tripura) cross-border rail link.
- Regional integration
- Bangladesh is crucial for inter-regional connectivity between South Asia and South East Asia. For example, initiatives like the Trans-Asian Railway, BBIN (Bangladesh, Bhutan, India and Nepal) Motor Vehicle Agreement.
- It is also willing to join ongoing India-Myanmar-Thailand trilateral project.
- Nepal exporting electricity to Bangladesh through India's grid (first example of sub-regional cooperation energy sector).
- India’s vision for regional leadership
- Bangladesh is central to India's ‘Neighbourhood First’ Policy, Act East Policy, Vision SAGAR, and Indo-Pacific Vision.
- Strengthening ties with Bangladesh helps India maintain its influence in the Bay of Bengal amid China's assertive presence.
- Economic
- Bangladesh is India’s biggest trade partner in South Asia and India is the second biggest trade partner of Bangladesh in Asia.
- In FY 2022-23, the total bilateral trade was US$ 15.9 billion.
- India's largest development partner (India extend Lines of Credit support).
- Trade in Indian Rupee has started between the two countries.
- Bangladesh is India’s biggest trade partner in South Asia and India is the second biggest trade partner of Bangladesh in Asia.