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[12] However, Bangladesh faces diplomatic challenges in balancing its relations with both India and China, particularly regarding the $1 billion Teesta River project backed by China. While China offers infrastructure development, India is concerned about the strategic security implications and seeks to limit China's influence in the region. [13]
Bangladesh-India bilateral trade was over US$10 billion in 2018–19. [51] [52] Bilateral trade between India and Bangladesh stood at US$6.6 billion in 2013–14 with India's exports at US$6.1 billion and imports from Bangladesh at US$462 million, representing more than double the value of US$2.7 billion five years ago. [53]
A long-standing dispute exists between India and Bangladesh over the appropriate allocation, and development, of the water resources of the Ganges River, which flows from northern India into Bangladesh. The issue had remained a subject of conflict for almost 35 years, with several bilateral agreements and rounds of talks failing to produce results.
Hasina had long been a strong ally of India and was alleged many times for working for Indian interests in Bangladesh, often at the cost of Bangladesh's sovereignty. Soon after Hasina's departure, diplomatic relations between Bangladesh and India began to deteriorate. [4] [5] [6]
At the outbreak of the Indo-Pakistani War of 1971, the Joint Force including regular army of Bangladesh, Mukti Bahini and the Indian Military liberated then East Pakistan, leading to the establishment of Bangladesh. India's role in the independence of Bangladesh led to the development of strong bilateral relations.
Indo-Bangladesh relations have been difficult since the fall of the Mujib government in August 1975 [206] over issues such as the Tin Bigha corridor and access to Nepal, the Farakka Barrage and water sharing, border conflicts near Tripura and the construction of a fence along most of the border which India explains as security provision against ...
Under the agreement, India received 51 of the 71 Bangladeshi enclaves (from 51 to 54 of the 74 chhits) that were inside India proper (7,110.2 acres, 2,877.4 ha), while Bangladesh received 95 to 101 of the 103 Indian enclaves (111 out of 119 chhits) that were inside Bangladesh proper (17,160.63 acres, 6,944.66 ha).
The diversions led to a crisis situation in Bangladesh in the dry season of 1976. In 1977, Bangladesh went to the United Nations and lodged a formal protest against India with the General Assembly of The United Nations, which adopted a consensus statement on 26 November 1976. Talks between the two countries were resumed in December 1976.