The longstanding infrastructure cooperation between neighboring countries Bangladesh and India has come to a sudden halt. Citing political instability and security concerns, India has decided to suspend all ongoing rail projects in Bangladesh. This development raises critical questions: why has India taken such a decision, and what are the underlying reasons?
Tensions between Bangladesh and India are gradually evolving into what some are describing as a “trade war.” Following the cancellation of transshipment facilities, India has now suspended three major rail connectivity projects and five survey works in Bangladesh. These projects, worth approximately BDT 7,000 crore, have been halted officially due to political unrest and concerns over the safety of workers involved in the construction.
According to a report by Indian news outlet Business Line, the suspended projects include the Akhaura-Agartala rail link, the Khulna-Mongla rail connection, and the expansion of the Dhaka-Tongi-Joydebpur railway. These projects were being implemented with Indian assistance and aimed to enhance rail connectivity between India’s mainland and its northeastern “Seven Sisters” states.
The Akhaura-Agartala rail link involved the construction of a 12.24-kilometer railway line, of which 6.78 kilometers fall within Indian territory. The Indian government had granted approximately INR 400 crore for this project. Meanwhile, the Khulna-Mongla broad-gauge rail line project was budgeted at around INR 3,300 crore. Through this line, Bangladesh’s second-largest seaport, Mongla, was expected to see increased efficiency, a move that also aligned with Indian interests, as Indian operators manage one of Mongla Port’s terminals.
The Dhaka-Tongi-Joydebpur project was being carried out with support from India’s EXIM Bank, but by the end of last year, only about 50 percent of the construction had been completed.
Additionally, surveys for five new railway routes across Bangladesh, which were also under consideration, have been suspended. Citing anonymous Indian government officials, Business Line reports that no further construction materials or financial support will be sent to Bangladesh until the political situation stabilizes. Officials emphasized that political stability in Bangladesh is a prerequisite for the resumption of these projects.
Meanwhile, India appears to be shifting its strategic focus. New plans involve significantly expanding its own rail infrastructure in the states of Uttar Pradesh and Bihar, and strengthening rail links with neighboring countries such as Nepal and Bhutan.
