Bangladesh may need Indian help to manage economy

New Delhi: The recent challenge created by power dues has highlighted that Bangladesh is not only dependent on India for electricity supplied through cross-border transmission lines but also in several other economically important and capital-intensive projects that helped Dhaka log robust growth over the past decade.

Over the past few years, India has extended several lines of credit to Bangladesh worth $8 billion and additional assistance for several infrastructure projects. The sectors include roads, railways, irrigation, shipping and ports. Bangladesh’s food basket depends on India and so does its pharmaceutical industry.

India-Bangladesh trade stood at $15.93 billion in FY 2022-2023. Cooperation in the power and energy sector has become one of the important pillars of India- Bangladesh relations. Bangladesh is currently importing 1,160 MW of power from India, MEA said.

A pipeline to transport high speed diesel from India into Bangladesh was a big achievement in 2023. Further, ONGC Videsh Limited, in a consortium with Oil India Limited, is present in off-shore oil exploration.

Bangladesh may need Indian assistance in managing its economy. It faces perennial threats of natural disaster, food security and energy security. India’s helping hand is critical for Bangladesh’s economy, sources said. “Bangladesh is surviving on external debt. Unchecked external borrowing has put Bangladesh at great risk of economic crisis that may fuel the ongoing social anarchy,” says Prabir De, professor with New Delhi-based think tank RIS.

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