Reviving India-Funded Projects in Bangladesh: A Strategic Shift Towards Sustainable Development or Status Quo?

New Delhi: India and Bangladesh are restarting important development projects. This comes after some uncertainty when Prime Minister Sheikh Hasina was removed from power in August 2024. With a new interim government now leading, Bangladesh is looking to rebuild its relationship with India.

Officials from both countries are meeting in Dhaka for two days to tackle issues and speed up these stalled projects. This is the first major meeting since the political upheaval last year, which forced Hasina to seek refuge in India.

After Hasina’s ousting, Nobel laureate Muhammad Yunus took over as Chief Adviser of the interim government. Many believed all India-funded projects would stop, but Yunus and his team confirmed that work will continue. Finance Adviser Salehuddin Ahmed stated, “These projects are necessary for us, and we’ve decided to keep them going.”

Ahmed emphasized that it doesn’t matter which government started these initiatives—they are vital for Bangladesh’s development. Yunus also expressed the importance of good relations with India, stating, “There is no way Bangladesh-India relations cannot be good.”

This declaration comes amid calls for early elections from the opposition Bangladesh Nationalist Party (BNP) and the rise of a new political group after last year’s protests.

India has invested significantly in Bangladesh’s growth, contributing nearly $8 billion through various development projects, including infrastructure for roads, railways, and ports. The Indian government also supports community projects, having funded 77 high-impact initiatives, from educational facilities to cultural centers, totaling over $50 million.

Experts believe that resuming these projects may signal a positive shift in relations between Bangladesh and India. K Yhome from the Asian Confluence think tank noted that the Bangladeshi government realizes the importance of maintaining ties with India, especially amid political challenges.

Bangladesh is on course to become a developing nation by January 2026 and aims to reach a $1 trillion economy by 2031. Experts agree that achieving these goals will be difficult without India’s help. Yhome pointed out that while there was initial tension due to Hasina’s close ties with India, the current leadership understands the need for cooperation.

Sharin Shajahan Naomi, an academic, echoed these sentiments. She stressed the need for practical approaches in foreign relations, stating that hostility doesn’t benefit anyone. Naomi suggested that the Bangladeshi government should address lingering issues like border conflicts and visa policies with India to foster better ties.