Key Challenges Highlighted in the Report

• Strategic Realignment: Collapse of the government in Bangladesh in August 2024 has created political uncertainty and a potential strategic shift in Dhaka away from India.
• Security Threats: Key concerns for India include illegal migration, cross-border terrorism, exacerbated by the 864 km of unfenced border in challenging riverine and mountainous terrain. 
• Economic Barriers and Trade Imbalances: Bilateral trade (USD 13.46 billion in 2024-25) remains heavily skewed toward India. 
  • Other challenges include infrastructure constraints at land ports, high congestion, and the influx of third-country goods (such as Chinese fabrics) under preferential provisions. 
• Water Sharing and Environmental Crisis: The Ganga Water Treaty (1996) expires in December 2026, with no formal renewal discussions underway. 
  • Also, agreements on 53 shared rivers (including Teesta) remain unresolved, while the Sundarbans delta faces threats from climate-driven sea-level rise. 
• Other issues: China’s expanding presence (e.g. Mongla Port upgrade, submarine base at Pekua), threatens Siliguri Corridor; attacks on religious minorities in Bangladesh.