India and Bangladesh unveiled measures to strengthen their defense relations on Saturday, June 22nd, signing agreements to expand cooperation in maritime security, the ocean economy, space, and telecommunications sectors.
According to the Associated Press, India is aiming to position itself as a regional power and a counterbalance to China.
These agreements were signed during Bangladeshi Prime Minister Sheikh Hasina’s state visit to India. Hasina is the first foreign leader to visit India since Prime Minister Modi began his third term in office two weeks ago.
Modi welcomed Bangladesh’s decision to join his proposed “Indo-Pacific Oceans Initiative.” The initiative aims to enhance and promote trade connectivity and maritime transportation with neighboring countries, with Modi stating that the agreement with Bangladesh is part of India’s “neighborhood first” policy.
Modi mentioned that he and Hasina discussed comprehensively strengthening defense cooperation, from defense production to modernizing armed forces, and decided to enhance cooperation in counter-terrorism, combating extremism, and border management.
“We share common perspectives on the Indian Ocean region. We welcome Bangladesh’s decision to join the Indo-Pacific Oceans Initiative,” Modi said.
In recent years, Modi has been working to bolster India’s position on the international stage and establish India as a crucial player in the Indo-Pacific region to counter China. India has been actively attracting foreign companies shifting manufacturing operations out of China. As border conflicts between India and China escalate, Modi is also seeking to strengthen India’s defense capabilities.
Direct passenger flights between China and India have been suspended for four years and have not resumed operations yet. Sources informed Reuters that over the past year, the Chinese government and airlines have repeatedly requested Indian aviation authorities to reinstate direct flight routes. However, an Indian official stated, “Unless there is peace and tranquility on the border, other aspects of the two countries’ relationship cannot move forward.”
Bangladesh also maintains good relations with China, as China is its primary trade partner for raw materials. Balancing diplomatic and trade relations with China, its major competitor India, and the United States poses a challenge for Bangladesh.
During her visit to New Delhi, Hasina stated that Bangladesh and India have decided to enhance cooperation in river water sharing and power energy sectors. She also met with Indian industry leaders and invited them to invest in Bangladesh. Bangladesh plans to develop larger ports, waterways, railways, and road connections. India has provided $8 billion in loans to Bangladesh over the past eight years to assist in expanding infrastructure.
Modi reflected on significant cooperation between the two countries over the past year during Hasina’s visit. He mentioned the completion of several essential projects, the commencement of trade in Indian Rupees between the two countries, and the construction of the first cross-border friendship pipeline. Modi also cited additional examples of cooperation.
Additionally, India will support the construction of an inland container warehouse in the Bangladeshi city of Sirajganj.
India is the largest export destination for Bangladesh in Asia. In the fiscal year 2022-23, the trade between the two countries reached $15.9 billion. India mainly exports cotton, automobiles, sugar, iron, steel, aluminum, electrical, and electronic equipment to Bangladesh, while importing grains, pulp and paper, cement, and raw hides from Bangladesh.