Bilateral Mechanisms

Bilateral Mechanisms

India was the first country to recognize Bangladesh as an independent state and established diplomatic relations with the country immediately after its independence in December 1971. In the last more than four decades, the two countries have continued to consolidate their political, economic, trade and cultural relations and have built a comprehensive institutional framework to promote bilateral cooperation.

2.         The principal mechanisms are:
Political and Security Cooperation: 

  • Framework Agreement on Cooperation for Development: A Framework Agreement on Development Cooperation, inter alia, providing for sub-regional cooperation was signed during Prime Minister of India’s visit to Bangladesh in September 2011. The Agreement enables the two countries to realize their shared destiny and common vision through the optimum utilization of opportunities for mutual benefit in the areas of trade, investment and economic cooperation; connectivity; water resources; management of natural disasters; generation, transmission and distribution of electricity, promotion of scientific, educational and cultural cooperation; people to people exchanges; environmental protection and responding to challenges of climate change; sub regional cooperation and enhancing cooperation in security. 
  • Joint Consultative Commission: In pursuance of the decisions taken by both Prime Ministers in September 2011, the Commission was set up at the level of Foreign Minister to review the status of the entire gamut of bilateral relations.
  • Home Ministers’ Meeting: Pursuant to the decisions taken by the Prime Ministers of India and Bangladesh, the Home Ministers of India and Bangladesh meet annually and review the status of cooperation in the area of security, border management and related bilateral concerns.
  • Land Boundary Agreement (LBA): The Agreement and it’s Protocol of 2011 seeks to address all outstanding land boundary issues and provide a final settlement to the India-Bangladesh boundary. The outstanding issues addressed include (i) undemarcated land boundary in three sectors viz. Daikhata-56 (West Bengal), Muhuri River-Belonia (Tripura) and Dumabari (Assam); (ii) enclaves; and (iii) adverse possessions.
  • Coordinated Border Management Plan (CBMP):  The Plan entails greater coordination between Border Security Force of India and Border Guard of Bangladesh to enhance quality of border management as well as ensure cross-border security by addressing challenges to the peace and sanctity of the border posed by human and drug trafficking, smuggling of goods, cross border crimes etc. 

Trade and Connectivity:

  • Bilateral Trade Agreement: This agreement provides for expansion of trade and economic cooperation, making mutually beneficial arrangement for the use of waterways, railways and roadways, passage of goods between two places in one country through the territory of the other and exchange of business and trade delegations.India, on its part, has unilaterally granted duty-free, quota-free access to all items except 25 tariff lines consisting of tobacco and alcohol to Bangladesh with effect from November 2011. This initiative has opened up the large Indian market to all Bangladeshi products.
  • Bilateral Investment Promotion and Protection Agreement (BIPA): The Agreement seeks to promote and protect investments from either country in the territory of the other, with the objective of increasing bilateral investment flow. Bangladesh and India have granted each other Most FavouredNation (MFN) status.
  • Double Taxation Avoidance Agreements (DTAA): To promote and foster economic trade and investment, India and Bangladesh signed the DTAA in 1991. Both countries also signed a Protocol amending the Convention for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income. This brings the Agreement in consonance with global measures included in the OECD Model Convention, 2008.
  • Memorandum of Understanding on Opening of Border Haats: The MoU signed in 2010 aims at further strengthening people-to-people contact on both sides of the border through the border haats, besides business in local products. Border Haats at Kalaichar and Balat in Meghalaya have been operationalised.
  • Joint Working Group on Trade has been formed to address para-tariff and non-tariff barriers issues raised by the business community on both sides.
  • Protocol on Inland Water Transit and Trade: The Protocol signed in 1972 allows the plying of inland vessels of one country through the specified routes of the other country.Shipping Secretary level talks are held regularly to review overall Protocol on Inland Water Transit and Trade related issues.

Economic and Development Cooperation:

  • Lines of Credit: India and Bangladesh signed the US$ 1 Billion Line of Credit Agreement in August 2010 for a range of projects, including railway infrastructure, supply of Broad Gauge locomotives and passenger coaches, procurement of buses and dredging projects. This line of credit is the largest ever given by India to any country. In 2012, India also announced conversion of US$ 200 million out of the US$ 1 billion credit as grant.
  • Memorandum of Understanding on implementation of Small Developmental Projects: The MoU provides for the implementation of Small Developmental Projects through Indian grant assistance in Bangladesh through local bodies and educational and vocational institutions. The MoUis intended for small infrastructure projects in the areas of livelihood activity, education, health, or community development. Conservation of the environment, empowerment of women and child welfare are expected to be the primary focus of such projects.

Bilateral Cooperation in Water Resources and Power:

  • Joint Rivers Commission (J.R.C.) – In June 1972, India and Bangladesh established the JRC at the level of Minister for Water Resources to maintain liaison and maximize benefits from common river systems, formulation of flood control works, formulation of proposals on flood forecasting, cyclone warning and irrigation projects.
  • Treaty on Sharing of the Ganga/Ganges Waters:Sharing of Ganga waters at Farakka between India and Bangladesh is done on the basis of a formula, key merit of which is that it shares available waters on a basis which is fair and equitable. The formula also takes into account the basic requirements and minimum needs of both sidesduring the lean season, i.e. from January 1 to May 31. This is aimed at meeting the fundamental requirements of both our countries through a just and reasonable sharing of the burden of shortage.
  • Memorandum of Understanding on Cooperation in the field of Renewable Energy: The MoU signed in September 2011 aims to establish the basis for a cooperative institutional relationship to encourage and promote technical, bilateral cooperation in the areas of solar, wind and bio energy on the basis of mutual benefit, equality and reciprocity.

Health and Environment:

  • Memorandum of Understanding on Cooperation in the fields of Health and Medical Sciences: The MoU signed in February 2013 is aimed at promoting cooperation between the two countries in the fields of health and medical sciences through exchange of scientific materials and information and joint collaboration in research in medical science.
  • Memorandum of Understanding on Conservation of the Sunderbans: The MOU seeks to facilitate cooperation in the areas of conservation of biodiversity, joint management of resources, livelihood generation for poverty alleviation and development, cataloging of local flora and fauna and studying the impacts of climate change.
  • Protocol on Conservation of the Royal Bengal Tiger of the Sunderbans: The Protocol provides for bilateral cooperation in undertaking scientific research, knowledge sharing and patrolling of the Sunderbans waterways on their respective sides to prevent poaching or smuggling of derivatives from wildlife and bilateral initiatives to ensure survival and conservation of the Royal Bengal Tiger in the unique ecosystem of the Sunderbans. The Protocol also provides for cooperation to promote understanding & knowledge of Royal Bengal Tigers, exchange of personnel for training and promotion of education.

Sub-regional Cooperation:

  • Joint Working Group on Water and Power – In pursuance of the directions of the Prime Ministers of India and Bangladesh to commence sub-regional cooperation amongst India, Bangladesh, Bhutan and Nepal Joint Working Group on Water & Power has been constituted to enhance cooperation for sharing the waters of common rivers, explore possibilities of common basin management of common rivers and harness the advantages of sub-regional cooperation in the power sector.
  • Joint Working Group on Transit and Connectivity – India-Bangladesh-Nepal- Bhutan Joint Working Group focuses on the implementation of measures for the up-gradation of road and railway networks among the participating countries leading to enhanced connectivity, trade, movement of goods and services as well as people-to-people contacts.

People-to- People Exchanges:

  • Cultural Exchange Programme (CEP):A bilateral Cultural Exchange Programme for the period 2009-2012 provides the framework for promotion of exchanges in the fields of music, theatre, art, painting, books, etc.
  • Revised Travel Arrangement:Highlighting the fact that greater people-to-people contacts and exchanges are the best way to bring the two countries even closer together, India and Bangladesh signed the Revised Travel Arrangement in January 2013 and updated on July 2018. The arrangement has eased visa arrangements between our countries and it helps businessmen, students, journalists, tourists and those travelling for medical treatment.
  • Memorandum of Understanding for establishment of India-Bangladesh Foundation: Foreign Ministers of India and Bangladesh signed a MoU for the establishment of India-Bangladesh Foundation with the objective of enhancing linkages between the two countries, particularly through economic, scientific, educational, technical and cultural co-operation and the promotion of greater understanding between the peoples of the two countries.

Source: High Commission of India, Bangladesh

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Dr Ajay Sahai

Director General & CEO
Federation of Indian Export Organisations (FIEO)