Issue Brief on “Bangladesh at the Crossroads: India’s Strategic Setback vs Pakistan’s Rising Diplomatic Clout”

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Following Sheikh Hasina’s exit from Bangladesh in August 2024, Bangladesh’s interim government began to reshape its foreign policy posture, gradually relocating from an India-centric approach and pursuing diversified diplomatic approach.[1] The  crucial victory of the Bangladesh Nationalist Party (BNP) in 2026 parliamentary election marks not only a political watershed moment for the South Asian nation, but also a potential repositioning regional order after years of pro-India posture.[2] India is  facing many setbacks from Bangladesh with most of its major projects cancelled by the Bangladesh interim government.[3] Meanwhile Pakistan has stepped up its investment and diplomatic outreach in Dhaka,  attempts to reach a defence deal on top of agenda.[4] Under Muhammad Younas administration Pakistani high officials and diplomats held multiple meetings with counterparts in Dhaka for cooperations between both countries. The Younas administration has also sought to deepen relations with Pakistan, China and Western powers. As Bangladesh becomes more confident, relations with India become more tense and this mistrust is likely to continue.[5] The trajectory of strained India-Bangladesh relations is likely to continue even under the newly elected BNP government but not as intense as they became under the interim government.  In April 2026, both sides formally agreed to normalize their partnership after eighteen months of strained relations, committing to boost cooperation in trade, energy, and people-to-people exchanges. However, analysts caution that Bangladesh’s growing strategic ties with China, Pakistan, and Türkiye, alongside unresolved border and water-sharing disputes, are likely to push the relationship toward compartmentalization rather than full normalization.[6]

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