The evolving political and economic landscape in Bangladesh presents India with unique opportunity.
The evolving political and economic landscape in Bangladesh presents India with a unique opportunity to strengthen its ties with its eastern neighbour. With increasing pressure on Nobel laureate Muhammad Yunus, who leads Bangladesh's interim government, and the United States halting funding for a USAID project, India finds itself in a position to play a pivotal role in shaping the region's future.
The growing challenges faced by Yunus's administration, including domestic unrest and economic strain, create an opening for India to deepen its engagement with Bangladesh. By offering diplomatic support and fostering dialogue, India can position itself as a reliable partner during this transitional phase. This approach would not only enhance bilateral relations but also counterbalance the influence of other regional players like China.
The suspension of USAID funding has left a void in Bangladesh's development landscape, which India can help fill. By increasing investments in infrastructure, energy, and education, India can strengthen its economic ties with Bangladesh while addressing critical gaps in its development needs. Initiatives like the India-Bangladesh Friendship Pipeline and enhanced trade agreements can further solidify this partnership.
Bangladesh's strategic location makes it a key player in regional connectivity initiatives. India can capitalise on this by accelerating projects like the BBIN (Bangladesh, Bhutan, India, Nepal) Motor Vehicle Agreement and enhancing cross-border rail and road networks. These efforts would not only boost economic integration but also reinforce India's Act East policy.
Sheikh Hasina's exile in India adds a layer of complexity to the situation. While India has historically supported Hasina's government, her presence on Indian soil could strain relations with the interim government in Dhaka. To handle this delicately, India must ensure that its support for Hasina does not overshadow its engagement with the current administration. Maintaining a neutral stance publicly while offering Hasina quiet refuge could help India balance its historical ties with her and its need to foster goodwill with the new leadership.
India could also use Hasina's presence as leverage in negotiations, signaling its willingness to mediate or facilitate dialogue between her faction and the interim government. This would position India as a stabilising force in Bangladesh's political landscape, further enhancing its regional influence.
India must also navigate the complexities of US-Bangladesh relations. While the US decision to halt USAID funding may strain its ties with Dhaka, India should avoid taking sides and instead focus on fostering a balanced relationship with both nations. By emphasising shared interests like counterterrorism and regional stability, India can maintain its strategic autonomy while strengthening its role as a regional leader.
India's engagement with Bangladesh must be rooted in mutual respect and shared goals. By addressing concerns like trade imbalances and ensuring equitable access to resources, India can build a sustainable and inclusive partnership. Additionally, leveraging cultural and historical ties can further deepen people-to-people connections, creating a strong foundation for long-term cooperation.
The current challenges in Bangladesh present India with a golden opportunity to enhance its influence and foster regional stability. By adopting a proactive and balanced approach, India can not only strengthen its ties with Bangladesh but also reinforce its position as a key player in South Asia. Handling the Hasina angle with tact and diplomacy will be crucial in ensuring a smooth and productive relationship with Dhaka.
