India- Bangladesh and the Economies.

The two neighbors India and Bangladesh had experienced a mixed exposure of both healthy and unhealthy relationships since long. India had greatly contributed to Bangladesh’s freedom but many political influences and local influences contributed to distances between the same like Islamist-allied BNP (Bangladesh Nationalist Party) which was in power from 2001-2006 in Bangladesh had few stands against the economic ties between the two nations. Moreover infiltration from Bangladesh and naxalites movement also raised few flames in between.

But now it seems its going quite well.

Few new recent developments show how these two countries are going hand in hand.

India has given a big amount as loan to Bangladesh; this is the largest ever loan given by India to any foreign country. This agreement was signed between Exim bank of India and the economic relations department of Bangladesh in the presence of finance minister Pranab Mukherjee. According to this agreement India will give $1 billion credit to Bangladesh for 14 infrastructure projects, out of which most are in the field of communication sector.

This will bring development to Bangladesh especially in the field of communications and IT which will further strengthen the economy of Bangladesh.

The most recent development is the new upcoming agreement between the two countries which is near finalized. It is about free movement of people and goods between both the countries.

This will help Bangladesh a lot in transforming itself as a regional hub, it will boost up its economy. And on Indian front it will give better connectivity to its seven sister states which will help in transforming economies in these states. Yes this is a win-win game for sure as said by Dr. Dipu Moni, foreign Minister Bangladesh.

The Hurdles

Opening the doors between the two countries India and Bangladesh will give easy entry and exit to Terrorists and the associated people who are against peace and well being of both the nations. This can harm the relationships between the countries. Though both countries have committed to fight against such forces; big uncertainties lies how this unfettered movement of people and goods will be taking place in midst of such activities. Security will still continue to be an issue.

Many Bangladeshi’s in past have settled down in many parts of India as they flew from their own country for basic necessities and still many such infiltration occurs so this need to be taken care off.

Best Regards,

Navneet Singh Chauhan.