India-Bangladesh bilateral relations received a boost as the two countries came close to resolving border disputes and trade issues on Tuesday. The Indian Prime Minister Manmohan Singh and Bangladeshi Prime Minister Sheikh Hasina agreed in the meeting to exchange 163 enclaves and to demarcate 6.5km of the border.
India also agreed to allow 61 items from Bangladesh to access Indian markets, duty-free.

The two countries however were not able to reach a compromise on the sharing of water from the Teesta and Feni rivers, which almost cause the collapse of other agreements as well.

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India has approved a $750 million loan for Bangladesh to develop its infrastructure. The announcement came ahead of Indian Prime Minister Manmohan Singh’s visit to Dhaka this week. The funding is part of the $1 billion credit agreement between the two countries to develop infrastructure projects in Bangladesh.

This move is seen as an effort to improve relations between the two neighbors, and to enhance trade links. New Dehli is looking for access to ports for its landlocked portions. Bangladesh has agreed to allow its neighbor use of Chittagong and Mongla ports.

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