West Bengal: Will Delhi-Kolkata Partnership after BJP's triumph Boost India-Bangladesh Relations?

Kolkata: The BJP's historic victory in West Bengal this week has established a rare political alignment between New Delhi and Kolkata—an alignment that could boost the connectivity agenda. It could also aid in improving relations with Bangladesh. This opens up opportunities for the state to emerge as an economic hub linked to Bangladesh, while also creating the potential to develop the entire Eastern South Asia region through new transport and energy infrastructure connecting Nepal, Bhutan, the Northeast region, and the Bay of Bengal.

For several years, the West Bengal government led by Mamata Banerjee appeared passive regarding the policy of enhancing India-Bangladesh economic interdependence. It either opposed initiatives or offered no response, all while consistently claiming to be marginalized. After vetoing the Teesta River Treaty in 2011 and only reluctantly supporting the Land Boundary Agreement in 2015, it became evident to policymakers in New Delhi that Chief Minister Mamata Banerjee was unwilling to make any extra effort to engage with Dhaka. As long as Sheikh Hasina remained in power, Kolkata could be bypassed. However, following her ouster from power in 2024, this situation ceased to be sustainable.

Did West Bengal Government Impact the Bilateral Connectivity Agenda?

One instance illustrates how Kolkata's political calculations hindered the bilateral connectivity agenda. In October 2024, Home Minister Amit Shah inaugurated India's largest and most modern passenger terminal at the Bangladesh border. This facility serves as South Asia's busiest land port and the economic lifeline for bilateral trade, handling over 50% of the total trade volume.

Occurring just four months after Sheikh Hasina's removal from power in Bangladesh, this inauguration also conveyed a significant message to the interim government led by Muhammad Yunus: that, notwithstanding political differences, India would continue to build cross-border connectivity for the mutual developmental benefit of the sub-region. Only Union Home Minister Amit Shah and a few other leaders attended this inauguration ceremony. The absence of the state government was clearly evident, as neither the Chief Minister of West Bengal, nor her ministers, nor even the departmental heads attended the event.

Were There Strained Relations Between Delhi and Kolkata?

While there will be numerous analyses regarding the political tensions and partisan differences between Delhi and Kolkata, one fact remains certain: in recent years, India’s fourth most populous state has remained on the periphery of the strategy for economic interdependence being implemented with its immediate neighbor—the world's eighth-largest nation.

This week's political developments could alter this situation. This is particularly significant as it coincides with a change of power in Dhaka, where a government led by Tarique Rahman and the BNP has assumed office. Unlike Yunus, Prime Minister Tarique Rahman is both willing and able to invest a portion of his domestic political capital into normalizing economic relations with India.

Are There New Opportunities for west Bengal in Delhi?

West Bengal is also poised to find new opportunities in Delhi, as Prime Minister Modi has announced the commencement of a new chapter in bilateral relations. The appointment of Dinesh Trivedi—who possesses extensive experience in Kolkata—as India's High Commissioner to Dhaka signals a clear commitment to improving ties with Bangladesh and assigning the state a larger role through "para-diplomacy." Assam serves as a prime example of this, where Guwahati has emerged as a sub-regional connectivity hub linking Bhutan, Bangladesh, and even Southeast Asia.

Will There Be a Boost for Relations with Bangladesh?

Kolkata's role in normalizing bilateral relations with Bangladesh is set to become increasingly critical, and certain options stand out in particular. The most significant of these concerns water and joint river management, which would entail reviving the Teesta River water-sharing agreement. Whether or not the Central Government can leverage this as a major confidence-building measure in Bangladesh will depend largely on how much political capital the new government in Kolkata is willing to expend.

Secondly, India could unilaterally announce the lifting of trade restrictions and the resumption of transshipment—via ports such as Kolkata—of export cargo from Bangladesh destined for third countries. This will benefit Bengal by positioning it as an economic and maritime transit hub.

Thirdly, India and Bangladesh should resume negotiations towards a Comprehensive Economic Partnership Agreement (CEPA). Success in this regard will depend on the extent to which the state government and industry are prepared to dismantle protectionist measures—particularly non-tariff barriers—to facilitate greater market access for Bangladeshi exporters.

Fourthly, recent visa and travel restrictions could be relaxed, a move that would yield significant benefits for Bengal. Prior to 2024, Kolkata was the primary beneficiary of the more than two million visas issued annually to Bangladeshi citizens, generating revenue for the tourism, healthcare, and education sectors. Realizing this growth-oriented mobility agenda will necessitate smart administrative solutions and the decoupling of this issue from the politically sensitive domain of immigration.

The final avenue relates to Bengal's potential to emerge as the hub for sub-regional energy and transport connectivity among Bangladesh, Bhutan, India, and Nepal. After decades of delays, India finally established the first trilateral power supply arrangement—connecting Nepal to Bangladesh—in 2024 and helped in its implementation.

To sustain this momentum, the state will require massive investment to upgrade its road, rail, port, riverine, energy, and data linkages, thereby enabling the creation of new multi-modal and economic development corridors connecting Eastern India, Bangladesh, and the Northeastern states. The selection and sequencing of these measures will depend on cost-benefit assessments conducted by all parties, although several hurdles still remain. Nevertheless, the Bengal election results present a "Delhi-Kolkata double-engine" opportunity to accelerate India's connectivity strategy with Bangladesh.