In an unprecedented move since the regime change, Bangladesh and India have conducted a comprehensive review of all Indian-funded development projects in Bangladesh that are experiencing delays. This development follows the ousting of former Prime Minister Sheikh Hasina in August 2024. According to sources, the two nations have agreed to expedite these projects.
A delegation from Bangladesh, which included Finance Adviser Salehuddin Ahmed, visited New Delhi this week for discussions with a team from India’s Ministry of External Affairs. Sources indicated that the discussions were productive, resulting in a collective commitment to accelerate the stalled projects.
India has provided approximately $10 billion in concessional loans and grants, positioning Bangladesh as its largest development partner, as noted in a submission by the Ministry of External Affairs to a Parliamentary Standing Committee.
Among the significant ongoing initiatives are cross-border rail connections, river dredging efforts, and various impactful community development projects. The political turbulence in Bangladesh has affected the implementation of these Indian projects, a situation that the Ministry of External Affairs has been monitoring closely.
During the review meeting, both nations acknowledged that, despite the delays, the projects would not be abandoned. Instead, they committed to resolving the challenges associated with each project to ensure their continuation.
Trade relations between Bangladesh and India under the interim government led by Muhammad Yunus remain stable, with India continuing to export goods to Bangladesh. Although challenges in dollar payments persist, trade activities are still being conducted effectively, according to sources.
Currently, there are 42 projects funded through three Lines of Credit from India, with 14 of these projects completed at a total cost of around $410 million, according to reports from Bangladeshi media.
Among the six railway projects supported by Indian funding, the Khulna-Mongla Rail Line is now operational. However, work on four additional projects is expected to face further delays, as indicated in these reports.
