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Recently, the Prime Minister of Bangladesh has visited India and held talks with Indian Prime Minister.

• India and Bangladesh have signed seven agreements for cooperation in areas ranging from sharing of river watersto space and unveiled new connectivity and energy initiatives.

What are the Key Highlights of the Meeting?

• The two sides have signed seven Memorandum of Understanding (MoU), which includes:
  
  • The withdrawal of water from the cross-border Kushiyara river.
    • The agreement will benefit southern Assam in India and the Sylhet region of Bangladesh.
    • The two nations unveiled the first unit of the Maitree super thermal power project being built in Khulna division of Bangladesh with concessional funding from India.
    • The unit was synchronized with Bangladesh’s power grid in August 2022, and the project will generate 1,320MW, when completed.
    • The 5.13-km Rupsha rail bridge was also inaugurated, a key part of the 64.7-km Khulna-Mongla port broad gauge railway project.
    • The bridge was constructed with an Indian line of credit of $389 million.
    • It will increase connectivity with Mongla, Bangladesh’s second largest port.
    • India has provided concessional loans worth USD 9.5 billion for development projects in Bangladesh, which includes:
      • Rail connectivity between Khulna and Dhaka, Chilahati and Rajshah.
      • Connecting Mongla port with Darshana-Gede at a cost of USD 312 million.
      • The Parbatipur-Kaunia rail project to facilitate the transportation of fuel is being built at a cost of USD 120 million.
      • Supply of road construction equipment and machinery worth USD 41 million to repair and maintain Bangladesh’s road network.
      • In 2018, India has extended USD 500 million defence Line of Credit (LoC) to Bangladesh.
      • In May 2018, Defence public sector undertaking of Kolkata had signed a Memorandum of Understanding with Bangladesh to provide assistance and know-how in the design and construction of warships.
      • Dhaka has shared a wish list of military platforms and systems that its armed forces would like to procure from India.
        • Bangladesh Army has approved procurement of three items:
          • 5 Bridge Layer Tanks (BLT-72) at USD 10 million
          • 7 Portable Steel Bridges (Bailey) at USD 2.2 million
          • 1 Mine Protective Vehicles at USD 2.2 million.
          • Off-road vehicles, heavy recovery vehicles, armoured engineer reconnaissance vehicles and bullet proof helmets.
          • Modernisation and extension of automobile assembling unit for a Bangladesh machine tools factory, supply of explosives, raw materials and tools

          What is India’s Vision on CEPA with Bangladesh?

          • About:
            • The Prime Minister of India has said that India and Bangladesh will soon commence negotiations on a Bilateral Comprehensive Economic Partnership Agreement (CEPA).
            • The CEPA is likely to focus on trade in goods, services, and investment, with a key objective being the reduction of the trade gap between the two countries.
              • For the year 2021, India’s imports from Bangladesh stands at USD 1.76 billion and exports to Bangladesh stands at USD 14.09 billion, resulting in a trade gap of USD 12.33 billion.
              • In 2021-22, Bangladesh has emerged as the largest trade partner for India in South Asia and the fourth largest destination for Indian exports worldwide.
              • Exports to Bangladesh grew more than 66% from USD 9.69 billion in FY 2020-21 to USD 16.15 billion in FY 2021-22.
              • DespiteCovid-19 related disruptions, bilateral trade grew 44% from USD 10.78 billion in 2020-21 to USD 18.13 billion in 2021-22.
              • India’s Exports to Bangladesh:
                • Raw cotton, non-retail pure cotton yarn, and electricity
                • Pure vegetable oils, non-knit men’s suits, and textile scraps.

                What are some Issues which Both Nations should Resolve?

                • There should be efforts to resolve pending issues concerning sharing of waters, resolving continental shelf issues in the Bay of Bengal, bringing down border incidents to zero, and managing the media.
                  • PM of Bangladesh held out the hope that the two countries will resolve the issue of sharing the waters of the Teesta River– an agreement on the matter has been pending since 2011.

                  UPSC Civil Services Examination, Previous Year Questions (PYQs)

                  Prelims

                  Q1. Consider the following statements: (2020)

                  1. The value of Indo-Sri Lanka trade has consistently increased in the last decade.
                  2. “Textile and textile articles” constitute an important item of trade between India and Bangladesh.
                  3. In the last five years, Nepal has been the largest trading partner of India in South Asia.

                  Which of the statements given above is/are correct?

                  (a) 1 and 2 only
                  (b) 2 only
                  (c) 3 only
                  (d) 1, 2 and 3

                  Ans: (b)

                  Explanation:

                  • As per data from the Department of Commerce, Indo- Sri Lanka bilateral trade value for a decade (2007 to 2016) was 3.0, 3.4, 2.1, 3.8, 5.2, 4.5, 5.3, 7.0, 6.3, 4.8 (in billion USD). It reflects continuous fluctuation in the trend of trade value. There has been an overall increase but the same cannot be said as consistent rise in trade value. Hence statement 1 is not correct.
                  • Bangladesh has been a major textile trading partner for India, with a share of more than 5% in exports and over 7% in imports. While annual textile exports to Bangladesh averages $2,000 million, imports are worth $400 (Year: 2016-17).
                  • The major items of exports are fibre and yarn of cotton, man-made staple fibres and man-made include higher volatility, an increased burden of foreign debt, and an effect on the balance of trade and exports. Thus allowing full capital account convertibility will hurt the economy in the times of global crisis. Hence, statement 3 is not correct.
                  • Therefore, option (a) is the correct answer.

                  Q2. In the Mekong-Ganga Cooperation, an initiative of six countries, which of the following is/are not a participant/ participants? (2015)

                  1. Bangladesh
                  2. Cambodia
                  3. China
                  4. Myanmar
                  5. Thailand

                  Select the correct answer using the code given below:

                  (a) 1 only
                  (b) 2, 3 and 4
                  (c) 1 and 3
                  (d) 1, 2 and 5

                  Ans: (c)

                  Explanation:

                  • The Mekong-Ganga Cooperation (MGC) is an initiative by six countries – India and five ASEAN countries, namely, Cambodia, Lao PDR, Myanmar, Thailand and Vietnam for cooperation in tourism, culture, education, as well as transport and communications. It was launched in 2000 in Vientiane, Lao PDR.
                  • Both the Ganga and the Mekong are civilizational rivers and the MGC initiative aims to facilitate closer contacts among the people inhabiting these two major river basins.
                  • The MGC is also indicative of the cultural and commercial linkages among the member countries of the MGC down the centuries.
                  • Therefore, option (c) is the correct answer.

                  Mains

                  Q. Critically examine the compulsions which prompted India to play a decisive role in the emergence of Bangladesh. (2013)