India has resumed issuing tourist visas to Bangladeshi nationals, marking a significant step toward normalizing relations between the two neighbors after nearly two years of suspension. The decision came into effect on Sunday, following disruptions rooted in violent protests that led to the ouster of former Bangladesh Prime Minister Sheikh Hasina and her subsequent exile in India.

The reopening of visa services follows Bangladesh’s February move to lift its own restrictions on visas for Indian citizens under the administration of Prime Minister Tarique Rahman. However, Hasina’s continued presence in India remains a complicating factor in bilateral diplomacy. India’s appointment of Dinesh Trivedi as High Commissioner to Bangladesh last month—elevated to a cabinet-minister rank—signals New Delhi’s intent to prioritize its relationship with Dhaka.

Analysts suggest that the visa resumption could pave the way for renewed cooperation in trade and economic engagement. Sreeradha Datta, professor of international relations at India’s O.P. Jindal Global University, noted that the reopening could lead to the gradual restoration of activities like cross-border trade, which were affected by India’s withdrawal last year of a transshipment facility. This facility had enabled Bangladesh to route exports through Indian ports and customs stations en route to other international markets.

Bangladesh’s current government seeks a balanced foreign policy approach, aiming to strengthen ties with both India and China to revitalize its struggling economy. During recent visits to Malaysia and China, Rahman pursued enhanced employment opportunities for Bangladeshi workers abroad and sought Chinese investment in infrastructure projects. Notably, discussions in Beijing reportedly included proposals for a Chinese special economic zone and the modernization of Mongla Port. A Chinese-backed economic corridor linking Myanmar and Bangladesh has also been proposed, potentially providing Beijing with direct access to the Bay of Bengal and the Indian Ocean region.

India closely monitors China’s expanding economic and strategic presence in Bangladesh, especially regarding projects near the “Chicken’s Neck,” a narrow land corridor connecting India’s northeastern states to the rest of the country. Experts emphasize Dhaka’s imperative to secure economic support despite Delhi’s concerns over China’s growing influence. Priyajit Debsarkar, a London-based author, described Rahman’s efforts to diversify Bangladesh’s partnerships as a careful balancing act that risks diluting investments from both China and India.

While China is aware that certain investments could increase tensions with India, there appears to be some restraint, according to Datta. However, Uday Chandra, a political-science professor at Ashoka University in India, characterized the China-Bangladesh economic corridor as more symbolic than imminent, citing Myanmar’s ongoing civil conflict as a major obstacle. Nonetheless, he highlighted the broader strategic consequences for India, including a possible erosion of influence along its eastern border.

Chandra argued that to counter China’s growing role, India must enhance economic incentives for Bangladesh by offering improved trade terms, transit facilities, and infrastructure support. The recent reopening of tourist visas is viewed as the first clear indication that the diplomatic freeze between India and Bangladesh is beginning to ease, setting the stage for deeper engagement amid regional geopolitical shifts.