Economic & geopolitical opportunities and challenges for Bangladesh

Abstract

Investment seeking Bangladesh's economy is hungry for local and international finance for its infrastructure development. One Belt-One Road (OBOR) seems opened a golden door, not only for Bangladesh's economic reform but also created an opportunity for higher bilateral cooperation between China and Bangladesh. The geographical location of Bangladesh is playing a vital role despite being a small economy and territory in the region. Covering three sides of the Bangladeshi border, economically emerging state India has a sharp eye look on Bangladesh's strategies and policies more than any other time. The hostile looks of India (on China's OBOR initiative) are not an easy task for Bangladesh regarding Geopolitical & Economic strategies. Growing interests in Bangladesh among China and India appeared as a two-edged sword. However, India was the major trading partner of Bangladesh. However, China's trade with Bangladesh has increased manifold in recent years to surpass India from 2004 onwards. This is slowing down, and the change of economic relations between India and Bangladesh, coupled with strained and uncertain political relations, raises multiple concerns. Many dynamics have contributed to China's growing presence in Bangladesh compared to India's decline concerning trade and investment. India has lost out to China in many vital industries. While reviewing and assessing recent developments, the study also depicts a strategy to counter India's declining economic influence in Bangladesh.