India, Bangladesh sign 22 pacts during PM Hasina visit

Deals include $5B in Indian credit for Bangladesh, as well as their first defense cooperation agreement

India, Bangladesh sign 22 pacts during PM Hasina visit

World Bulletin / News Desk

India and Bangladesh signed 22 landmark agreements during the state visit of Bangladesh Prime Minister Sheikh Hasina Saturday, including their first-ever defense cooperation agreement and a multi-billion-dollar line of credit.

“India has always stood for the prosperity of Bangladesh and its people. We are a long-standing and trusted development partner of Bangladesh,” said Indian Prime Minister Narendra Modi in a joint statement released after meeting with Hasina.

Among the agreements was a new $4.5 billion line of credit for the implementation of projects in priority sectors in Bangladesh. With this, India has allocated $8 billion for Bangladesh over the past six years.

India also announced an additional $500 million credit for the purchase of military equipment from India. An agreement was also signed on peaceful use of nuclear energy.

However, a landmark water-sharing deal remained unresolved. The Indian government favors the deal on the Teesta River, but its state of West Bengal opposes it. The Teesta passes through West Bengal and enters Bangladesh before it merges into the Brahmaputra. Bangladesh has been demanding 50 percent of the Teesta water since 1972, but West Bengal has refused to share more than 25 percent of the water.

Since India helped Bangladesh gain independence from Pakistan in 1971, the two countries have shared a close relationship.

 

Last Mod: 08 Nisan 2017, 23:41
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