Bangladesh’s Careful Diplomacy in the India-Pakistan Crisis

Since the independence of Bangladesh, India has been regarded as a trusted neighbor. Over the years, the bilateral relationship has been shaped not only by political realities but also by evolving multilateral economic engagements. However, economic relations between the two countries have often come under strain following political transitions in Bangladesh.

Over the past two decades, Bangladesh has emerged as one of the fastest-growing economies in Asia, driven by a vibrant manufacturing sector, a growing middle class, and a steady rise in export earnings. As the country prepares for its transition from least developed country (LDC), attracting foreign direct investment (FDI) has become increasingly vital to sustaining this momentum.

Bangladesh found a breathing space after US President Donald Trump had granted a 90-day exemption from the recently imposed 37% tariff on Bangladeshi exports to the United States, as part of a broader initiative temporarily easing trade restriction for multiple countries. This brings to the fore a longstanding challenge that Bangladesh can no longer afford to sideline—political trade dependence.

Between 8 and 13 April 2025, a series of protests and violent incidents engulfed Murshidabad, a Muslim-majority district along the Indo–Bangladeshi border under the Indian state of West Bengal, over the adoption of the controversial Waqf (Amendment) Act, 2025 in the Indian Parliament earlier this month. Three people were killed in the violence, and more than 274 people have been detained over the incidents.

Water is the lifeblood of Bangladesh, a delta nation intricately woven with rivers and wetlands. Yet, this abundance of water has paradoxically become a source of distress due to rampant pollution, unsustainable extraction, and climate-induced challenges.

Regarding the devastating earthquake that occurred in Myanmar on 28 March, a specialized rescue and medical support team from the Armed Forces under the supervision of the chief adviser has been operating in Naypyidaw since 1 April, providing crucial relief and medical assistance. This medical support team consists of the Bangladesh Air Force, Bangladesh Army and Bangladesh Navy along with civil doctors. Since the earthquake struck Myanmar, about 3500 people have died, still, 220 civilians have been untraced.

The events like investment summits are crucial not only for exhibiting a country`s trade potential and development projects but also for communicating the nation`s desire to invite foreign direct investments (FDI).  It makes us really optimistic that our government has arranged a four-day `Bangladesh Investment Summit 2025` from April 7–10 to boost Bangladesh`s economic vitality.

Investment summit is crucial not only for exhibiting a country`s trade potential, development projects but also for communicating the nation`s desire for inbound foreign capital, especially foreign direct investment (FDI).

With its geopolitical landscape and strategic location, Bangladesh finds itself at the crossroads of maintaining balanced relationships with major global powers—such as China, the United States, and India.

On March 4th, a mob attack on two Iranian nationals and another individual occurred in the Bashundhara Residential Area of Dhaka. The police later rescued the two foreigners and admitted them to hospital. The injured Iranians are Mohammad Ahmed, 74, and his grandson MD. Mehedi, 18. They were visiting Bangladesh as tourists.

On 17 February 2025, Bangladeshi Adviser for Foreign Affairs Md. Touhid Hossain stated in an interview with Indian daily The Hindu, “Unfortunately, just after 5th of August, there has been a really, almost unexplainable frenzy in the Indian media about this issue, mostly based on falsehood.” While the Foreign Adviser was speaking about the Indian media’s almost apocalyptic portrayal of the conditions of minorities in Bangladesh, this rings true about the portrayal of almost every issue relating to Bangladesh in the Indian media.

In recent months, remittances have emerged as the most significant stabilising factor for Bangladesh`s economy. In recent months, this indicator has made significant and long-lasting progress; in fact, it has become so prominent that inflows have taken the spotlight away from other economic contributors.

Bangladesh, a nation founded on secular principles, has long been home to a diverse tapestry of cultures and religions. The Hindu minority, constituting approximately 8% of the population, has historically coexisted peacefully with the Muslim majority.

The recent suspension of USAID funding globally has shocked the world. As a recipient, Bangladesh has experienced shockwaves in the country’s development sector.

OVER the past few decades, Bangladesh has achieved tremendous progress in reducing poverty and economic progress with consistent gross domestic product growth and improvements in human development indicators, scoring 0.67 according to a report of UNDP in 2022, positioning it at 129 out of 193 countries and territories in the world.

On the First of February, 2025 the Union Minister of Finance and Corporate Affairs of India Smt. Nirmala Sitharaman presented the Union budget 2025-26 in the Parliament where 120 crore rupees has been allotted to Bangladesh as foreign aid which remains the same as the previous budget of India.