5 April 2026

New Governments in Bangladesh and Nepal Open Window for India to Recast Ties with Neighbors

Elizabeth Roche

The winds of political change sweeping through South Asia, with the installation of new governments in Nepal and Bangladesh, offer New Delhi a chance to rework ties with two key neighbors.

In Nepal, 35-year-old rapper-turned-politician Balendra Shah took the oath as prime minister on March 27 after a landslide victory in general elections, held in the aftermath of the 2025 Gen Z protests. Shah’s swearing in as prime minister marks an important milestone in Nepal’s history—he is the youngest to hold this post.

To India’s east, in Bangladesh, a government headed by Tarique Rehman of the Bangladesh National Party (BNP) took office on February 17. This followed the ouster of the long-entrenched Sheikh Hasina government in 2024, in student-led protests in July-August of that year.

Taken together, the new governments in India’s neighborhood represent significant breaks from the past and open the door for new possibilities.

Within days of the BNP government taking charge in Bangladesh, India hosted a senior Bangladeshi military intelligence official, Major General Kaiser Rashid Chowdhury. More visits to India are expected in the coming days, including that of Bangladeshi Foreign Minister Khalilur Rehman. And in a display of goodwill, India sent 5,000 metric tons of diesel to Bangladesh amid the energy crisis triggered by the Iran war.

On March 26, at an event to mark Bangladesh’s National Day, Bangladeshi High Commissioner to India Riaz Hamidullah drew attention to the “high importance” that Prime Minister Rahman accords to “its relationship with India, a partnership shaped by [a shared] history, culture, and geography.” As the new government in Dhaka “embarks on a robust mandate, we look forward to advancing our ties and engagements with India, premised on dignity, equality, mutual trust and respect, and shared benefits,” he said. Hamidullah also pointed to the immense potential that remains to be tapped in bilateral trade. “Our ties go far beyond the $12 billion in bilateral goods trade. Conservative estimates point to comprehensive economic transactions in the order of $28 to $30 billion, minimum,” he said.

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