The earlier Khaleda Zia government had supported and provided safe havens to radical Islamic and separatist groups promoting violence in India. North-eastern Indian separatist groups now know that they cannot consider Bangladesh a safe haven. Hasina has also cracked down on terrorist groups like the Jamat-ul-Mujahideen, the Harkat-ul-Jihad-ul-Islami and the Lashkar- e-Taiba and acted to pre-empt cross border attacks on India and on the Indian High Commission in Dhaka. She appears determined to restore the primacy of the moderate Sufi Islamic traditions in her country and made it a point to visit the revered Sufi shrine in Ajmer during her four-day visit to India.

One of the major irritants in relations between India and Bangladesh has been the unresolved differences on demarcating the border. Under the 1974 Indira-Mujib agreement, India is required to return around 111 enclaves to Bangladesh and in return gets 51 enclaves from Bangladesh. It took 18 years to lease a small corridor of land near Tin Bigha to Bangladesh, which New Delhi was required to do under the 1974 agreement. Barely 6.5 kilometres out of the 4,096 kilometre land border remain undemarcated. Sheikh Hasina secured agreement in New Delhi to move to expeditiously resolve these differences. A political consensus needs to be built in West Bengal to resolve the remaining issues of 'adverse possessions' and enclaves, which have bedevilled relations through the past four decades. The dialogue to settle this issue is set to be revived.

The most crucial issue for India is 'connectivity', which would involve developing road, rail and river communications facilities in Bangladesh, for promoting access to its landlocked north-eastern states. By extending a Line of Credit of $1 billion for infrastructural development in Bangladesh, India has cleared the way for the development of road and rail communications linking its landlocked north-eastern states with the rest of the country. Bangladesh, in turn, would earn substantial revenues for use of its communications facilities by India. New Delhi can also now invest in the development and use of the Chittagong and Mongla ports, in return for providing access for goods from Nepal and Bhutan to these ports. It has been agreed that India would provide assistance for the Akhaura-Agartala rail link, which provides it access to its distant north-eastern state of Tripura. India will also meet Bangladesh's immediate energy requirements by supplying 250 MW of electrical power. Bangladesh presently faces a shortage of around 1800 MW of power and there are indications that in course of time it would need around 1000 MW of power from India. These agreements should be implemented expeditiously, as bureaucratic inertia and rigidity have often exacerbated misunderstandings in India's relations with Bangladesh.

Two highly emotive issues in Bangladesh — the sharing of the waters of the River Teesta and the construction by India of the Tipaimukh Dam across the Barak River in Assam — were addressed during Sheikh Hasina's visit. The sharing of the Teesta Rivers could be addressed as Bangladesh has agreed to 'Joint Hydrological Observations' by both countries so that future actions are taken on the basis of realities and not unfounded fears. The two neighbours should now be able to agree to mechanisms to address mutual concerns on this issue, as they did in resolving the Farakka tangle. Considerable effort will also be needed to convince public opinion in Bangladesh that their fears of Tipaimukh dam causing scarcity, silting and floods in the country are ill-founded and politically motivated.

Sections of the Bangladesh Army and its intelligence apparatus have traditionally been averse to a close relationship with India. There appears to have been some change in this mindset in the aftermath of the BDR mutiny. New Delhi appears ready to strengthen military ties with Bangladesh and facilitate greater participation of the Bangladesh military in international peace keeping to discourage Bonapartist ambitions.

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