Bangladesh’s interim leader Muhammad Yunus has reversed his stance on India’s Northeast, now advocating for an integrated economic plan that includes Bangladesh, Nepal, Bhutan, and the Seven Sister states of India.
Why Did Yunus Change His Position?
- India’s Policy Shift: In April 2025, India terminated a transshipment facility that allowed Bangladesh to export cargo to Nepal, Bhutan, and Myanmar via India’s Northeast.
- China Factor: In March, Yunus had pitched Bangladesh as the “only guardian of the ocean” for India’s Northeast, suggesting that the region could be an extension of the Chinese economy.
- Diplomatic Fallout: Indian leaders, including chief ministers from Northeast states, criticized Yunus for invoking India’s internal geography in an economic pitch to China.
Bangladesh’s New Economic Proposal
- Regional Cooperation: Yunus now suggests that Bangladesh, Nepal, Bhutan, and India’s Northeast should collaborate in hydropower, healthcare, and transportation infrastructure.
- Energy Agreements: Bangladesh recently signed a Tripartite Power Sales Agreement with Nepal and India, allowing Dhaka to import 40MW of Nepalese hydropower via the Indian grid.
- Healthcare Expansion: Bangladesh plans to open a 1,000-bed hospital in Rangpur, welcoming patients from Nepal and Bhutan, promoting regional health security.
India’s Response & Future Outlook
- BIMSTEC Focus: Indian External Affairs Minister S. Jaishankar reaffirmed that India’s Northeast is central to BIMSTEC, a regional bloc comprising Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand.
- Modi’s Diplomatic Gesture: During the April BIMSTEC Summit in Bangkok, PM Narendra Modi greeted Yunus with a brief handshake, contrasting his usual hug diplomacy.
- Security Concerns: Following the Pahalgam terror attack, a retired Bangladeshi general controversially suggested that Bangladesh should capture India’s Northeast in the event of war.
With Yunus now advocating for regional economic integration, India’s strategic response will shape future trade and diplomatic relations in South Asia.
Stay tuned for more updates on India-Bangladesh relations and regional economic policies! 🚀
