India Suspends Rail Projects in Bangladesh Due to Political Turmoil: Report
- MGMMTeam
- Apr 22
- 4 min read
India has reportedly suspended railway projects in Bangladesh that were aimed at enhancing connectivity to the northeast states through Bangladesh. This decision comes as India seeks alternative routes to maintain stability and ensure strategic security in the region. The pause is attributed to political instability and concerns over the safety of workers in Bangladesh. The move follows growing concerns about the situation in Bangladesh, particularly with the rise of anti-India sentiment under the current regime, which has advocated for stronger ties with Pakistan and China.

Key projects, including the Akhaura-Agartala Rail Link, which is already under construction, and the Khulna-Mongla Rail Link, are expected to be impacted by the halt. Bangladesh's shift toward China and Pakistan, at the expense of its relationship with India, which has been fruitful in terms of regional connectivity, especially in railways and waterways, further complicates matters. Additionally, the Dhaka-Tongi-Joydebpur rail expansion is likely to be affected by this decision. Experts estimate that the total cost of these projects is around Rs 5,000 crore. Reports indicate that five other planned projects have also been postponed.
India-Bangladesh relations took a significant downturn after Bangladesh's interim government Chief Advisor, Md Yunus, made comments regarding the northeast and invited China to increase its presence in the region. This led to India revoking transshipment rights for Bangladesh, while Dhaka suspended the import of yarn from India. India has been actively promoting rail connectivity projects to improve regional ties, but recent political instability and anti-India rhetoric, including calls for greater Chinese influence, have strained cooperation between the two nations.
The Agartala-Akhaura Railway Link
In November 2023, Prime Minister Narendra Modi and then Bangladeshi Prime Minister Sheikh Hasina virtually inaugurated three projects, one of which was a crucial railway link connecting Nischintapur in Tripura with Gangasagar in Bangladesh. This cross-border rail line, located near Agartala in Tripura and Akhaura in Bangladesh, is expected to enhance trade between the two nations and drastically cut travel time between Agartala and Kolkata via Dhaka once fully operational. Upon completion, the rail link is projected to reduce the journey time from Kolkata to Agartala from 36 hours to just 12 hours, eliminating the need to pass through the narrow Siliguri Corridor—commonly referred to as the Chicken’s Neck—which currently serves as the sole railway route to the northeastern states.
The Khulna-Mongla Rail Link
The Khulna-Mongla Port Rail Line Project is being carried out with the support of a concessional Line of Credit from the Government of India, totaling $388.92 million. This initiative involves the construction of approximately 65 km of broad-gauge rail track linking Mongla Port with the existing rail network in Khulna. As a result, Mongla, Bangladesh's second-largest port, is now connected to the broad-gauge railway system. In 2024, India secured operational rights for a terminal at Mongla Port, which is expected to have a significant impact on regional cooperation and transportation. India now has transshipment access to both Chittagong and Mongla ports, facilitating the movement of goods to its northeastern states while bypassing the chicken's neck corridor.
The Dhaka-Tongi-Joydebpur Rail Expansion Project
This ambitious project, supported by India, was initially scheduled for completion by 2027 but has faced significant delays. Its goal is to enhance connectivity and capacity in central Bangladesh, especially around Dhaka.
Bangladesh requested additional funding for the project due to cost overruns caused by various issues. Physical work on the project did not begin until February 2019, primarily due to complications in the design and tendering process. As of now, only about half of the work has been completed.
Ties Suffer Another Setback
India has made significant investments in ongoing rail projects in Bangladesh, but recent developments have raised doubts among experts about whether India can maintain the same level of involvement it has had in recent years. With Bangladesh shifting its focus towards China and Pakistan, there are concerns among observers of the India-Bangladesh relationship that India may face obstacles in implementing projects built on mutual cooperation and interest. During Md Yunus's recent visit to China and his talks with the Chinese President, the potential for China to invest in railway infrastructure in Bangladesh was discussed. Sources indicate that China plans to increase its investments in Bangladesh's infrastructure as part of its Belt and Road Initiative, with a projected US$ 4.45 billion investment in roads, railways, and ports.
Are There Alternatives for India?
Securing the northeast through alternative connectivity routes remains a significant challenge for India. However, with the rapid advancement of rail infrastructure in the region, ensuring availability of other routes in critical situations is a subject of ongoing discussion among security experts. Currently, all road and rail routes to the northeastern states pass through the Chicken's Neck, or Siliguri Corridor, which, at its narrowest point, is only about 22km wide and is considered a strategic area for security. One potential solution is focusing on developing railways through Nepal and Bhutan as alternative routes, although this comes with its own set of challenges. If the situation in Bangladesh continues as it is, experts suggest a reassessment of the current strategy.
While neither India nor Bangladesh has issued an official statement on the matter, officials from both sides acknowledge a recent slowdown in engagement, particularly across sectors requiring significant coordination, like railway projects. Sources indicate that Bangladesh has not made considerable efforts to address India's concerns on several flagged issues. For the time being, it appears that a pause in progress is the only viable option, according to those familiar with the developments.
Although Bangladesh claims the situation has stabilized, the recent developments have not instilled confidence that normalcy will soon return.
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