India and Bangladesh signed a slew of agreements on Saturday, including a $4.5 billion concessionary line of credit from India for development projects in Bangladesh, as the South Asian neighbours try to deepen their ties.
Indian Prime Minister Narendra Modi and his Bangladeshi counterpart, Sheikh Hasina, held wide-ranging talks in New Delhi, exchanging views on defence, regional security and cooperation in combating international terrorism.
Officials from the two sides signed no less than 22 agreements, including a framework deal for defence cooperation over the next five years and an additional $500 million for Bangladesh to buy military equipment from India.
The two sides also signed an agreement on civil nuclear cooperation under which India will help Bangladesh develop its civilian nuclear program.
Modi said Hasina’s visit marked the ‘golden era’ of India-Bangladesh relations and described India as ‘a long-standing and trusted development partner of Bangladesh.’
India and Bangladesh share a nearly 4,100km (2,545 miles) border. The two countries have had a close relationship since 1971, when Bangladesh, aided by India, gained independence from Pakistan following a bloody nine-month war.
Wary of China’s growing interest in India’s backyard, Modi has been keen to play a greater leadership role in South Asia since coming to power in 2014.
‘India has always stood for the prosperity of Bangladesh and its people. We are a long-standing and trusted development partner of Bangladesh,’ Modi said at a press briefing.
‘In this context I am happy to announce a new concessional line of credit of $4.5 billion for the implementation of projects in priority sectors for Bangladesh.
‘This brings our resource allocation for Bangladesh to more than $8 billion over the past six years.’
There was no breakthrough however in a long-standing dispute about the sharing of water from the Teesta river which flows through both nations although Modi vowed to find a solution to the issue seen as vital for Bangladesh farmers.
The deal was aborted at the very last minute during former Indian prime minister Manmohan Singh’s visit to Bangladesh in 2011 and has been in the doldrums since.
Hasina, whose Awami League is historically seen as more sympathetic to India than the arch-rival Bangladesh Nationalist Party, said the two countries will jointly produce a documentary on the 1971 War of Liberation of Bangladesh, a move that is likely to irk Pakistan.
Hasina is the daughter of Sheikh Mujibur Rahman, who led Bangladesh to independence from Pakistan in 1971.
The government says that up to three million people died in the independence war, many killed by Bangladeshis who collaborated with Pakistani forces.
India’s intervention on behalf of Bangladesh’s independence fighters proved decisive in that conflict.
‘We are committed to expand our relationship with India,’ said Hasina.
‘The entire South Asia region will be a beneficiary of our friendly relations and cooperation.’
Join GhanaStar.com to receive daily email alerts of breaking news in Ghana. GhanaStar.com is your source for all Ghana News. Get the latest Ghana news, breaking news, sports, politics, entertainment and more about Ghana, Africa and beyond.