Bangladesh Urged to Balance Extradition Issue with Broader Ties with India

Bangladesh Urged to Balance Extradition Issue with Broader Ties with India Image collected

Business Daily International Desk

Published : 21:24, 22 August 2026

The extradition of former Prime Minister Sheikh Hasina remains an important political and legal issue for Bangladesh. At the same time, analysts say Dhaka should continue engaging with New Delhi on other areas of mutual interest, including trade, energy, water sharing, border management, security, connectivity and regional cooperation.

Bangladesh has formally requested India to extradite Sheikh Hasina. India has said that the matter is being considered through its own legal process. While the issue remains an important part of bilateral relations, experts believe broader national interests should also remain central to Bangladesh’s foreign policy.

Bangladesh and India share significant economic and geographical links. During the 2024-25 fiscal year, bilateral trade was approximately $11.39 billion. Bangladesh imported goods worth around $9.62 billion from India and exported approximately $1.76 billion in goods to the neighbouring country.

India is also an important source of raw materials for Bangladesh’s textile and garment industries. A significant portion of Bangladesh’s yarn imports comes from India, with businesses citing competitive pricing, large shipments and relatively quick delivery as some of the reasons for the dependence.

At the same time, strengthening domestic textile production and developing alternative sources of raw materials remain important. Policymakers therefore need to consider both the interests of local industries and the competitiveness of Bangladesh’s export-oriented sectors.

Energy security is another major economic concern. Reliable supplies of gas and electricity are essential for industrial production, exports and investment. Disruptions in energy supplies can affect production capacity and increase operating costs for businesses.

Water management is also a key component of Bangladesh-India relations. The two countries share 54 transboundary rivers, making cooperation on water resources, agriculture, the environment and livelihoods particularly important. The renewal of the Ganges Water Sharing Treaty is among the issues requiring continued bilateral engagement.

Border management and security cooperation are equally important. Bangladesh and India have shared interests in addressing cross-border crimes, including smuggling, drug trafficking and human trafficking. Continued communication and coordination can contribute to greater stability along the shared border.

For Bangladesh, diversifying international trade and economic partnerships is also important. Strengthening economic relations with China, Japan, South Korea, the United States, the European Union and Gulf countries, while expanding regional connectivity and trade, could help broaden the country’s economic opportunities.

Such diversification does not necessarily mean reducing engagement with any particular country. Rather, it can involve maintaining balanced relationships with multiple partners while protecting Bangladesh’s economic and strategic interests.

Bangladesh’s foreign policy therefore faces the task of maintaining its position on the extradition issue while continuing practical engagement with India on other bilateral priorities. Trade, energy, water, border management, security and regional connectivity all require sustained dialogue and cooperation.

Ultimately, Bangladesh’s foreign policy should remain focused on protecting its broader national interests. Maintaining diplomatic engagement across multiple areas can help ensure that any single political issue does not overshadow long-term priorities such as economic growth, energy security, water management, border stability and regional cooperation.

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