Development cooperation has emerged as a key pillar of the bilateral relationship. From modest beginnings in the years after Bangladesh's liberation, India's development cooperation with Bangladesh has grown in size and coverage. With USD 8 billion in three Lines of Credit under implementation, Bangladesh has become India’s largest development partner. The broad pillars of current development cooperation consist of the following:
Lines of Credit (LoC):
The first Line of Credit of US$ 1 billion was extended to Bangladesh in 2010 for developing infrastructure projects, mainly in fields of railways and public transport. Government of India had subsequently converted US$ 200 million out of the US$ 1 billion LoC as grant assistance in June 2012 and also increased the corpus to US$ 862 million.
A second LoC of USD 2 billion was announced during the visit of PM Narendra Modi to Bangladesh in June 2015. Under the 2nd LoC, 16 projects including mainly in the fields of Power, Railways, Road and Transport, Health and Technical Education etc had been identified and are at different stages of implementation.
The third LoC of US $ 4.5 billion to Bangladesh was announced in April 2017 during the visit of Prime Minister of Bangladesh to India. Under the 3rd LoC 15 projects in the fields of Power, Railways, Road and Transport, Health and Technical Education, ITC, Shipping and Solar based connectivity etc had been identified and are at different stages of approvals and implementation.
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Federation of Indian Export Organisations (FIEO)