India, Bangladesh begin talks on economic partnership

Bangladesh's Prime Minister Sheikh Hasina met her Indian counterpart Narendra Modi during a four-day visit aimed at boosting bilateral ties. The two leaders, who met at India's New Delhi-based presidential residence, or Rashtrapati Bhavan, are expected to engage in talks on connectivity, energy, food security, and trade.

What did Hasina and Modi say?

"We can work together so that people not only (in) India, Bangladesh, and also the South Asian people, they can get a better life. That is our main focus," Hasina said, highlighting the friendly relationship shared by the two countries.

Modi announced that the two countries will begin discussions on a comprehensive economic partnership: "We also decided to increase cooperation in sectors such as IT, space and nuclear energy." 

Hasina is the daughter of Bangladesh's founding father Sheikh Mujibur Rahman, who also served as the country's first president after its split from Pakistan. She has maintained a close relationship with India, and her visit is being viewed as politically significant as it comes ahead of Bangladesh's general elections next year.

India, Bangladesh face trade imbalance

While India is Bangladesh's largest trade partner in South Asia, there has been a significant trade imbalance between the countries. In the last fiscal year, Bangladesh imported goods worth around $14 billion (€14 billion) from India while exports to India ran lower at $1.8 billion, official figures show.

Hasina is expected to push to bolster investment and trade, and initiate progress on long-standing issues such as water-sharing of the Teesta River, a major river that begins in the Indian state of Sikkim and runs through West Bengal before flowing into Bangladesh.

The visit is also crucial for India as China ramps up involvement in almost all major infrastructure development schemes in Bangladesh. To counter Beijing's influence in its immediate vicinity, India is also eager to take up joint projects.

During her trip, Hasina met Indian businessman Gautam Adani, who recently became the world's third-richest person. She spoke to India's foreign minister and will call the president and vice president before leaving the capital for the neighboring city of Jaipur on Thursday.

see/wd (AP, Reuters)