India and Bangladesh Relations in 2025: What's Really Happening?
Despite some unresolved disputes, the india-bangladesh cooperation continues to strengthen through various channels. India has provided approximately $7.862 billion through four different Lines of Credit programs, making Bangladesh the largest recipient of India's financial assistance initiatives. Additionally, both countries share membership in regional organizations including SAARC, BIMSTEC, IORA, and the Commonwealth.
The relationship has seen practical benefits too. In 2021, India began exporting 500 megawatts of electricity daily to Bangladesh, significantly helping alleviate their national power shortage. Furthermore, the historic land boundary agreement signed in 2015 resolved decades-old border disputes by exchanging 162 enclaves affecting around 50,000 people.
In this analysis, we'll examine what's really happening in India-Bangladesh relations in 2025, exploring the historical context, recent diplomatic developments, areas of ongoing cooperation, and the challenges that continue to shape this important South Asian partnership.
A Look Back: How India-Bangladesh Relations Evolved
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The relationship between India and Bangladesh traces back to liberation itself. Originally, the Indo-Bangladesh Treaty of Friendship, Cooperation and Peace in 1972 cemented strong bilateral ties in the early days following independence. However, the assassination of Sheik Mujibur Rahman in 1975 marked a turning point, as relations deteriorated under subsequent military regimes.
From 1971 to 2000: The foundation years
The initial foundation years were characterized by fluctuating relations. Early progress included the 1977 Ganga river water sharing agreement and the establishment of a Joint River Commission in 1979. Nevertheless, tensions persisted over water sharing and border disputes. When Sheik Hasina first became Prime Minister in 1996, bilateral relations improved notably with the finalization of the long-pending Ganga water treaty. Indeed, 1999 saw the inauguration of direct bus service between Dhaka and Calcutta, fostering people-to-people connections.
The Hasina era (2009–2024): Strategic alignment and tensions
Hasina's return to power in 2009 ushered in what many called the "golden era" of India-Bangladesh relations. During this period, bilateral trade flourished, reaching US$10.46 billion in FY 2018-19, a remarkable 28.5% increase from the previous year. Moreover, India extended multiple credit lines totaling approximately US$7 billion between 2010-2017.
Security cooperation became a cornerstone of the relationship. Hasina's government actively cracked down on insurgent groups using Bangladesh as a safe haven, addressing one of India's primary security concerns. Furthermore, the landmark 2015 Land Boundary Agreement resolved the 68-year-old border dispute.
Post-Hasina transition: A new chapter in 2025
The regional political order transformed dramatically after Hasina's fall in August 2024. Forced to resign amid massive student-led protests, she fled to India, which further strained bilateral relations. Consequently, many Bangladeshis developed anti-India sentiment, believing that India had supported Hasina's increasingly authoritarian regime.
Under interim leader Muhammad Yunus, Bangladesh demanded Hasina's extradition while recalibrating its foreign policy. Through diplomatic efforts, tensions began easing by December 2024, when India's foreign secretary visited Bangladesh. In early 2025, Bangladesh's Army Chief emphasized the need for a "balanced relationship" based on equality and fairness, describing it as "give and take".
Ultimately, while historical ties remain strong, both nations face the challenge of rebuilding trust in this new chapter of their diplomatic history.
Key Diplomatic Events Shaping 2025
The diplomatic landscape between India and Bangladesh has been dramatically reshaped by several pivotal events in 2025. These encounters have established new patterns of engagement following the political transition in Bangladesh.
The 2024 consulate attack and its aftermath
Bilateral tensions escalated in December 2024 when demonstrators attacked the Bangladesh Assistant High Commission in Agartala, Tripura. The attackers, identified as members of Hindu organizations, broke into the mission's premises, destroyed property, and burned Bangladesh's national flag. In response, Bangladesh's Foreign Ministry condemned the act as a "pre-planned" attack that violated the Vienna Convention on Diplomatic Relations.
India acknowledged the incident as "deeply regrettable" and subsequently arrested seven individuals while suspending three police officials for negligence. This diplomatic breach prompted Bangladesh to indefinitely suspend visa and consular services at the mission, thereby complicating people-to-people connections.
Modi-Yunus meeting at BIMSTEC Summit
A turning point came on April 4, 2025, when Prime Minister Narendra Modi met Bangladesh's Chief Adviser Muhammad Yunus at the BIMSTEC Summit in Bangkok. This marked their first meeting since Sheik Hasina's exit. Throughout their 40-minute exchange, Modi reiterated "India's support for a democratic, stable, peaceful, progressive and inclusive Bangladesh".
The meeting addressed several contentious issues. Modi urged that "rhetoric that vitiates the environment is best avoided", referring to Yunus's earlier statements about India's Northeast. Meanwhile, Yunus raised Bangladesh's request for Hasina's extradition and mentioned the Ganga water treaty. Both leaders agreed that bilateral issues should be resolved through constructive discussions.
Statements from military and foreign affairs leaders
Military leadership has played a crucial role in stabilizing relations. In January 2025, Indian Army Chief General Upendra Dwivedi emphasized that "any kind of animosity is not in each other's interest" as both countries hold "mutually strategic importance". He also confirmed ongoing communication with his Bangladeshi counterpart.
Nevertheless, challenges remain. In May 2025, Bangladesh swiftly distanced itself from inflammatory remarks by retired Major General ALM Fazlur Rahman, who suggested Bangladesh should occupy India's northeastern states if India attacked Pakistan. The Bangladesh government clarified that such views "do not reflect the position or policies of the government".
India's Foreign Secretary Vikram Misri's visit to Dhaka in December 2024 and External Affairs Minister Jaishankar's meeting with Bangladesh's Foreign Affairs Adviser in February 2025 underscored India's commitment to engagement despite ongoing tensions.
Areas of Cooperation in 2025
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Despite diplomatic challenges, tangible cooperation between India and Bangladesh continues to shape their bilateral relationship in 2025. Both nations recognize the practical benefits of maintaining functional ties across key sectors.
Trade and economic ties
Presently, Bangladesh remains India's largest trading partner in South Asia. The bilateral trade volume reached USD 14.24 billion in 2022-23 before slightly declining to USD 12.91 billion in FY24. Major Indian exports include cotton (USD 1.52 billion) and mineral fuels (USD 1.17 billion), while Bangladesh primarily exports apparel and clothing accessories (USD 595.53 million). Throughout 2025, the trade relationship has faced new challenges, markedly after India restricted imports through land ports, affecting approximately USD 770 million worth of Bangladeshi goods. These restrictions particularly impact Bangladesh's garment sector, which constitutes its largest export to India.
Energy and infrastructure projects
Energy cooperation remains vital in 2025, with Bangladesh continuing to import significant electricity from India. In total, Bangladesh has signed deals to purchase 2,656 MW from Indian power plants. The Adani power plant in Jharkhand, which supplies 1,496 MW exclusively to Bangladesh, has become a focal point after payment disputes. Bangladesh has requested full power restoration while paying USD 85 million monthly to clear its outstanding dues. Additionally, both countries celebrated a milestone in November 2024 with the inauguration of the first trilateral power transaction involving Nepal, using the Indian grid to supply Bangladesh with 40 MW of electricity.
Defense and border security
Military collaboration has strengthened considerably in 2025. The joint exercise "Sampriti" between armies has completed seven rounds, focusing on counter-terrorism operations. In June 2024, the countries signed agreements expanding cooperation in maritime security, following which the Bangladesh Navy contracted with India's Garden Reach Shipbuilders for an 800-ton oceangoing tug—the first major purchase under India's USD 500 million defense credit line. Both nations continue coordinating efforts against regional challenges including human trafficking and narcotics smuggling.
Cultural and educational exchanges
Educational collaboration serves as a cornerstone for people-to-people connections. In 2025, approximately 550 Bangladeshi students received prestigious Indian Council for Cultural Relations (ICCR) scholarships to attend top Indian institutions including IITs and NITs. Coupled with this, Bangladesh and India renewed their MoU on administrative reforms, planning capacity-building programs for 1,500 officers from 2025-2030. These educational exchanges create lasting intercultural friendships, with students becoming cultural ambassadors in each other's countries.
Ongoing Challenges and Points of Tension
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While cooperation exists in multiple domains, unresolved tensions remain at the heart of India-Bangladesh relations in 2025. These challenges threaten to undermine decades of diplomatic progress.
Border killings and security concerns
The 4,096-kilometer border between India and Bangladesh continues to be a flashpoint for violence. Human rights organizations report that at least 1,236 Bangladeshis were killed and 1,145 injured by India's Border Security Force (BSF) between 2000 and 2020. In 2024 alone, 25 Bangladeshis were reportedly shot dead. BSF justifies these actions as responses to smuggling and illegal crossings, but rights groups document excessive force including torture, arbitrary detention, and extrajudicial killings. Despite periodic promises to bring border killings "to zero," the practice persists, fueling distrust.
Water sharing disputes: Ganges and Teesta
The Teesta river dispute remains a major irritant. Bangladesh seeks 50% of the water flow during December-May when scarcity is most acute. Currently, India utilizes most of the river's resources through approximately 20 large dams and hydroelectric plants. The negotiations have dragged on since 1972, with political complications from West Bengal state, whose chief minister opposes water-sharing arrangements that might impact local farmers. Simultaneously, the 30-year Ganga Water Treaty expires in 2026, requiring renegotiation.
Illegal migration and citizenship issues
Estimates suggest over 15 million illegal Bangladeshi immigrants reside in India, although exact figures remain contested. This migration has altered demographics in India's northeastern states, fueling local tensions and sometimes insurgency. India's verification processes, recently condensed to 30 days before potential deportation, have intensified concerns. Border security implementation remains ineffective despite fencing efforts.
Rise of anti-India sentiment in Bangladesh
Following Sheik Hasina's fall in 2024, anti-India sentiment has intensified. Many Bangladeshis view India as Hasina's "enabler", perceiving unresolved issues like water sharing, border killings, and trade imbalances as evidence of India's "big brother" attitude. This sentiment now transcends political disagreements, increasingly rooted in religious identity. Recent restrictions on cross-border trade, affecting goods worth approximately $770 million, have only exacerbated these tensions.
Conclusion
The India-Bangladesh relationship stands at a critical crossroads in 2025, shaped by both historical cooperation and contemporary challenges. Despite the political upheaval following Sheik Hasina's exit, bilateral engagements continue through trade partnerships, energy projects, defense cooperation, and cultural exchanges. Nevertheless, significant hurdles remain unresolved. Border killings persist as a humanitarian concern, while water-sharing disputes over the Teesta river and the upcoming Ganges Treaty renegotiation demand urgent attention. Additionally, migration issues and growing anti-India sentiment complicate diplomatic efforts.
Though both nations share deep historical and cultural bonds dating back to Bangladesh's liberation, their relationship demands recalibration based on mutual respect and equitable partnership. The recent high-level meetings between Prime Minister Modi and Chief Adviser Yunus signal potential for constructive dialog. Certainly, the economic interdependence between these neighbors creates practical incentives for cooperation, as evidenced by the $12.91 billion bilateral trade volume and ongoing energy collaborations.
The path forward requires addressing long-standing grievances while building on established frameworks. Both countries must prioritize candid communication to overcome the "big brother" perception that fuels resentment. Border security protocols need humanitarian reforms, while water-sharing agreements demand fair resolution. Furthermore, economic partnerships should deliver balanced benefits.
Ultimately, India and Bangladesh face the challenging task of navigating their relationship through turbulent waters. Their ability to resolve contentious issues while maintaining functional cooperation will determine whether 2025 marks a new chapter of resurgence or continued strain in this vital South Asian partnership.
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