DHAKA, Bangladesh — India is likely to give Bangladesh a credit line of at least $3.5 billion for infrastructure projects during Prime Minister Sheikh Hasina’s state visit in April, as Beijing and New Delhi jostle for geopolitical influence in South Asia.
The credit line, which would be India’s third to its neighbor, would go toward a variety of projects ranging from nuclear and liquefied natural gas power plants to ports, railways, and the establishment of special economic zones, according to a Bangladesh government document. New Delhi and Dhaka will also sign a defense cooperation agreement and various memorandums of understanding relating to hydro projects in Bhutan, shipbuilding, and upgrading border posts, according to a separate document.
India is trying to strengthen relationships with neighboring states such as Bangladesh and Sri Lanka as China continues to court South Asian nations by pledging large sums of money for port and infrastructure projects that New Delhi views with suspicion. In a sign of its deepening ties with Beijing, Bangladesh bought two submarines from China last year.
The government of Indian Prime Minister Narendra Modi, who announced a second $2 billion line of credit when he visited Bangladesh in 2015 after an earlier $800 million credit line, has tried to integrate the region’s economies with road, rail, and shipping routes.
But even as India seeks to unite its neighbors against its archrival Pakistan, New Delhi’s financial fire power still pales in comparison to the funds available to Chinese President Xi Jinping, who last year pledged $20 billion in low-cost loans for infrastructure projects, in addition to existing large investments in Pakistan and Sri Lanka.
Bloomberg News