India-Bangladesh Relations Face Significant Strain Amidst Political and Diplomatic Disputes

Escalating Tensions Mark India-Bangladesh Relations

Relations between India and Bangladesh have entered a critical phase, marked by escalating political and diplomatic disputes that have impacted trade, mobility, and regional security. This deterioration has been particularly pronounced since the ouster of former Bangladeshi Prime Minister Sheikh Hasina in August 2024, whose subsequent exile in India has fueled anti-India sentiment in Bangladesh.

The shift in diplomatic confidence is unfolding against a sensitive backdrop in Bangladesh, where economic factors such as elevated inflation and currency depreciation amplify the potential costs of disruptions to trade predictability with India.

Political and Diplomatic Flashpoints Intensify

Several political and diplomatic issues have contributed to the current strain. India's refusal to extradite Sheikh Hasina, despite Dhaka's requests, remains a significant point of contention. Furthermore, India has expressed strong concerns over attacks on Hindu minorities in Bangladesh, leading to reciprocal accusations of sectarian violence. The interim government in Bangladesh, led by Muhammad Yunus, has reportedly sought closer ties with China and Pakistan, raising security concerns for New Delhi.

Diplomatic exchanges have also seen increased friction. Both nations have summoned each other's envoys over various issues, and Bangladesh has restricted visa services for Indians in major cities like Kolkata, Mumbai, and Chennai, following reciprocal visa suspensions since late 2025. India has also voiced concerns regarding security threats to its diplomatic mission in Dhaka and the resurgence of radical groups within Bangladesh.

Trade and Mobility Face Disruptions

The political and diplomatic strains have directly affected economic and social exchanges. Trade relations have seen reciprocal restrictions, with India imposing curbs on Bangladeshi imports, particularly ready-made garments and processed food, and Bangladesh previously restricting Indian yarn exports. These measures have impacted supply chains, market access, and created uncertainty for investors. India also revoked a key transshipment facility that allowed Bangladesh to export via Indian airports.

Cross-border mobility has suffered due to visa restrictions, disrupting travel for medical care, education, and tourism. Long-standing issues such as illegal immigration from Bangladesh to India, exacerbated by India's Citizenship Amendment Act (CAA) and the National Register of Citizens (NRC), continue to be a source of tension. Disputes over border fencing and occasional skirmishes between the Border Security Force (BSF) and Border Guards Bangladesh (BGB) further highlight the challenges in managing the shared frontier.

Regional Security and Water Disputes

Regional security concerns have heightened amidst the deteriorating relationship. The unresolved Teesta River water-sharing dispute remains a significant point of contention, with Bangladesh seeking a greater share and exploring potential Chinese investment for a comprehensive management project. Talks for the renewal of the Ganga Water Sharing Treaty, set to expire in December 2026, are also strained.

India has fortified its eastern frontier, particularly around the Siliguri Corridor, citing concerns about potential insurgent activity if border coordination with Bangladesh weakens. There are also allegations of Bangladesh becoming a transit route for terrorist groups targeting India's Northeast. The tensions have even spilled into sports, with Bangladesh refusing to travel to India for the T20 World Cup and banning telecasts of the Indian Premier League (IPL).

Outlook Remains Uncertain

The current trajectory suggests a period of continued strain in India-Bangladesh relations. While energy ties remain comparatively stable, the broader political distrust and strategic realignments pose significant challenges to the historically close relationship between the two South Asian neighbors.