Bangladesh’s interim government has sought to lower the temperature in its relationship with New Delhi, with Finance Adviser Salehuddin Ahmed saying Dhaka does not want a “bitter relationship” with a large neighbour and instead aims to deepen bilateral ties while safeguarding economic stability.Speaking to reporters after a meeting at the Secretariat on Tuesday, Ahmed said the administration’s priority was constructive engagement. He underlined that the interim government’s approach was driven by practical considerations rather than rhetoric, stressing continuity in diplomacy and trade at a time when Bangladesh is navigating domestic economic pressures and a sensitive political transition.
The remarks come as Dhaka recalibrates its foreign policy following political changes at home, with the interim administration focused on stabilising prices, restoring confidence among investors and maintaining export momentum. Relations with India are central to those goals, given the two countries’ deep trade links, shared borders and extensive cooperation on energy, transit and security.
Bangladesh is India’s largest trading partner in South Asia, while India ranks among Bangladesh’s top import sources. Bilateral trade has expanded steadily over the past decade, driven by duty-free access for Bangladeshi goods, growing energy cooperation and improved connectivity. Officials in Dhaka see stable ties with New Delhi as essential for managing supply chains, especially for fuel, fertiliser and food grains, which have a direct bearing on inflation at home.
Ahmed’s comments also reflect an awareness of concerns voiced by sections of the business community and civil society about diplomatic uncertainty during periods of political transition. Exporters, particularly in the garments sector, have repeatedly flagged the importance of predictable regional relations to keep logistics costs in check and avoid disruptions to cross-border movement.
At the same time, Dhaka has been signalling that its engagement with India will be balanced and interest-based. Officials have indicated that issues such as water sharing, border management and non-tariff barriers will continue to be raised through established channels. The interim government has sought to reassure domestic audiences that cooperation does not preclude firm negotiation on unresolved matters.
Political analysts say the choice of language used by the finance adviser was deliberate, aimed at projecting moderation to both domestic and international stakeholders. Bangladesh’s interim setup, tasked with overseeing governance during a transitional phase, has been under scrutiny from development partners and investors keen to assess policy continuity and macroeconomic discipline.
On the economic front, Bangladesh faces a complex mix of challenges, including pressure on foreign exchange reserves, elevated import costs and the need to service external debt. Maintaining smooth trade flows with India is viewed as a buffer against volatility, particularly for essential commodities and power imports. India supplies a significant share of Bangladesh’s electricity through cross-border grids, a factor that has become more prominent as Dhaka manages energy demand.
Diplomatically, the two neighbours have a long history of cooperation rooted in Bangladesh’s independence and reinforced through successive agreements on transit, rail and road links. Over the past few years, expanded connectivity projects have shortened travel times and reduced costs for goods moving between Bangladesh, India’s northeast and beyond. Officials on both sides have described these initiatives as mutually beneficial, supporting regional integration.
Ahmed’s emphasis on avoiding acrimony also comes against the backdrop of regional geopolitical shifts, where South Asian countries are navigating competing global interests while trying to protect domestic economic priorities. For Bangladesh, maintaining a pragmatic relationship with India is seen as part of a broader strategy to keep external relations steady as it engages with multiple partners on trade, investment and development financing.