India extends $4.5 billion new line of concessional credit to Bangladesh

india-bangladesh-flag-300x200 concessional creditIn a joint statement after signing of agreements in Delhi, Prime Minister Narendra Modi announced a new line of concessional credit of $4.5 billion for implementation of development projects in Bangladesh. Apart from that, Modi also announced $500 million of concessional credit for defence procurement in the country. India and Bangladesh today signed 22 agreements in strategic sectors like defence and civil nuclear cooperation during Bangladesh Prime Minister Sheikh Hasina’s visit to India.

“We held productive talks on wide-ranging issues including civil nuclear cooperation, border and Teesta water share agreement,” Modi said. “Energy security is an important dimension of India-Bangladesh development partnership and it continues to grow,” Modi added. Lauding Bangladesh’s efforts in order to curb terrorism in the country, Modi said country’s zero tolerance policy towards terrorism is an inspiration for other countries.

However, both the countries could not found common ground on Teesta water sharing pact. Admitting that the pact was “important” for India-Bangladesh ties, Modi assured India’s commitment to the issue. He said an “early solution can and will be found” to the Teesta water sharing issue. Before signing of agreements, both the leaders held talks on key bilateral, regional and international issues of mutual concern. The leaders explored ways to strengthen bilateral ties in key strategic areas of defence, security, trade and energy. This is the Bangladesh Prime Minister’s first bilateral visit to India in seven years. She had last visited in 2010.

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