Context:

• Prime Minister Sheikh Hasina returned to power in Bangladesh for a historic fourth straight term earlier this month after her party, the Awami League, secured two-thirds of the seats in the January 7 national elections. 
• At this juncture, understanding the aspects of relations between India and Bangladesh becomes important.

Strong Foundations:

• India played a crucial role in Bangladesh’s liberation war(1971), laying the groundwork for a close relationship. India helped with men and material in the war against Pakistan and helped Bangladesh garner global recognition.
• Soon after,the relationship soured due to military regimes and anti-Indian sentiments. Sheikh Hasina’s leadership since 1996 has strengthened ties, particularly through the Ganga water treaty.

Multisectoral Cooperation at present:

• Bilateral trade has boomed, making Bangladesh India’s largest South Asian trade partner and India, the second largest trade partner of Bangladesh. Bilateral trade of around $18 billion.
• A Comprehensive Economic Partnership Agreement (CEPA) is under discussion to further boost trade. 
• India is a major development partner, funding infrastructure projects like the Akhaura-Agartala rail link. India has extended credit lines of around $7 billion since 2010.
• Energy cooperation involves electricity imports from India and regional connectivity plans like the BIMSTEC Master Plan.
• India has keen interest in Bangladesh’s Matarbari port, Chattogram port and Mongla port projects, crucial for an industrial corridor, which can help India to develop its North East region.

Recent Points of Tension:

• The Teesta water sharing dispute remains unresolved for a long time due India’s internal political situation.
• The Rohingya refugee crisis presents a complex challenge with differing approaches by India and Bangladesh. Military junta rule in Myanmar further complicates the issue for both the countries.
• Cross-border terrorism and religious tensions pose security concerns.
• US criticism of Bangladesh’s democratic record and visa restrictions add complexity, which may affect the financial transactions with the country in case of any US sanctions.
• China’s growing economic influence in Bangladesh raises concerns for India. China has built 12 highways, 21 bridges and 27 power and energy projects in Bangladesh.

The Prime Ministership of Sheik Hasina gives hope for a continued positive relations with Bangladesh. Both the countries should come together to solve their issues on an equal footing.