Publish: 09:26, 16 Mar, 2025

Indian loan disbursements below expectations, projects under review

Online Desk
Indian loan disbursements below expectations, projects under review
Photo - Collected

Indian loan disbursements to Bangladesh have been significantly lower than expectations, as India released only around $80.14 million between July and January of FY25 under its Line of Credit (LOC) scheme, indicating a sharp decline compared to previous years.

There have also been no new loan commitments from India during this period.

The Economic Relations Division (ERD) of Bangladesh attributes this slow disbursement to delays in project implementation, particularly after regime changes in Bangladesh in August 2024.

Several India-funded projects were halted, notably the Ashuganj-Akhura four-lane road project, which was delayed for four months when Indian contractors withdrew their workers.

Other projects have also experienced similar delays, further slowing the pace of loan disbursement.

Currently, eight projects in the transport and infrastructure sectors are still active under Indian loan schemes. The $80.14 million disbursed over the past seven months represents just one-quarter of the total disbursement in the previous fiscal year, raising concerns over the overall progress of these initiatives.

Experts have pointed out that ongoing discussions between Bangladesh and India are focused on identifying which projects will continue and which will be put on hold. They stress that priority should be given to projects critical to Bangladesh’s economy. Besides, the relaxation of procurement conditions will also be key to moving forward.

As of January, India had disbursed $1.88 billion under the LOC. Additionally, India had committed $7.36 billion in loans to Bangladesh in 2010, 2016, and 2017. Despite these commitments, disbursements have not met expectations.

In recent years, India has typically disbursed over $300 million annually, with $311.4 million disbursed in the 2023-24 fiscal year. However, disbursements were much lower during the COVID-19 pandemic, totaling $141 million in 2020-21 and $140.8 million in the previous year.

To date, 36 projects have been initiated under the LOC agreements, with 15 completed and 8 ongoing. The remaining 13 projects are in various stages of planning. Bangladesh and India have agreed to reassess the current list of projects.

A review meeting held in Dhaka in early March this year led to a consensus on reevaluating ongoing projects. A joint committee will now be formed to analyse delays, identify problems, and propose solutions. If necessary, the committee may recommend removing certain projects from the list.

Mustafa K Mujeri, a former chief economist of the Bangladesh Bank, “It is normal to have the current India-Bangladesh relationship affect the two countries’ trade ties. The trade ties will not become normal, unless the diplomatic ties between the two countries ease. If the political ties between two countries are not good, then the economic relationships between them cannot be strong either.”

“Indian loan disbursement in Bangladesh dipped despite previous loan commitments. If the problems are not resolved through discussions on the projects concerned, then they will negatively affect both the countries,” added Mujeri, who is also the director general of Bangladesh Institute of Development Studies (BIDS).

Courtesy: Daily Sun.

Bd-pratidin English/Tanvir Raihan

More News
CPD recommends raising tax-free income limit to Tk 4 lakh
CPD recommends raising tax-free income limit to Tk 4 lakh
Gold prices hiked by Tk2,613 per bhori
Gold prices hiked by Tk2,613 per bhori
Chinese solar company to invest in Bangladesh: envoy
Chinese solar company to invest in Bangladesh: envoy
Iran, Bangladesh discuss ways to expand bilateral trade
Iran, Bangladesh discuss ways to expand bilateral trade
NBR to digitise operations under master plan
NBR to digitise operations under master plan
Trump establishes Bitcoin reserve as digital Fort Knox
Trump establishes Bitcoin reserve as digital Fort Knox
Biman posts a 36 pc sales growth in 5 months
Biman posts a 36 pc sales growth in 5 months
Peanut farming sees promising prospects in Panchagarh
Peanut farming sees promising prospects in Panchagarh
Malaysian police investigate crypto investment scams as 2 victims lose huge
Malaysian police investigate crypto investment scams as 2 victims lose huge
China's Ecarx in talks with VW to develop smart cars for Europe, US, CEO says
China's Ecarx in talks with VW to develop smart cars for Europe, US, CEO says
26,250 tonnes of rice arrive at Ctg port from Pakistan
26,250 tonnes of rice arrive at Ctg port from Pakistan
Trade through Hili land port halted for India’s Holi festival
Trade through Hili land port halted for India’s Holi festival
Latest News
Report of ‘No parade on Independence Day’ is untrue: CA press wing
Report of ‘No parade on Independence Day’ is untrue: CA press wing
8 hours ago | National
CPD recommends raising tax-free income limit to Tk 4 lakh
CPD recommends raising tax-free income limit to Tk 4 lakh
9 hours ago | Business
Yemen vows ‘professional and painful’ response to US strikes
Yemen vows ‘professional and painful’ response to US strikes
9 hours ago | International
Oscar for Emergency? Kangana says America can keep their ‘silly’ award
Oscar for Emergency? Kangana says America can keep their ‘silly’ award
10 hours ago | Entertainment
Gold prices hiked by Tk2,613 per bhori
Gold prices hiked by Tk2,613 per bhori
10 hours ago | Business
Cuba begins restoring power to Havana, outlying provinces
Cuba begins restoring power to Havana, outlying provinces
10 hours ago | International
Fakhrul urges quick national election to restore stability
Fakhrul urges quick national election to restore stability
10 hours ago | National
People won’t tolerate excuse of delaying elections: Nazrul Islam
People won’t tolerate excuse of delaying elections: Nazrul Islam
10 hours ago | National
CA to hold special meeting with police tomorrow
CA to hold special meeting with police tomorrow
11 hours ago | National
Tarique promises trial for killings in 2024 uprising if BNP wins
Tarique promises trial for killings in 2024 uprising if BNP wins
11 hours ago | National
DMP urges people not to create suffering by blocking roads
DMP urges people not to create suffering by blocking roads
11 hours ago | City
Air chief leaves for USA
Air chief leaves for USA
11 hours ago | National
Travel ban imposed on Papon, his family
Travel ban imposed on Papon, his family
11 hours ago | National
Chinese solar company to invest in Bangladesh: envoy
Chinese solar company to invest in Bangladesh: envoy
12 hours ago | Business
BFIDC urged to produce eco-friendly products
BFIDC urged to produce eco-friendly products
12 hours ago | National
Court freezes 27 bank accounts of ex-MP Papon, family
Court freezes 27 bank accounts of ex-MP Papon, family
12 hours ago | National
Govt recommends to withdraw 6,202 politically motivated cases
Govt recommends to withdraw 6,202 politically motivated cases
12 hours ago | National
SpaceX discusses over probable Starlink services at Bangladesh’s airports
SpaceX discusses over probable Starlink services at Bangladesh’s airports
13 hours ago | Tech
Iran, Bangladesh discuss ways to expand bilateral trade
Iran, Bangladesh discuss ways to expand bilateral trade
13 hours ago | Business
Iran denies again aiding Yemen's Houthi rebels
Iran denies again aiding Yemen's Houthi rebels
13 hours ago | International
Training for transport workers to prevent sexual harassment in public transport
Training for transport workers to prevent sexual harassment in public transport
13 hours ago | National
Man City stumble in Champions League chase
Man City stumble in Champions League chase
13 hours ago | Sports
NBR to digitise operations under master plan
NBR to digitise operations under master plan
13 hours ago | Business
Protesters flood Belgrade in one of biggest anti-govt rallies
Protesters flood Belgrade in one of biggest anti-govt rallies
14 hours ago | International
‘Abrar case verdict establishes concept of bringing discipline’
‘Abrar case verdict establishes concept of bringing discipline’
14 hours ago | National
Cancer prevalence high among children, teenagers in Bangladesh
Cancer prevalence high among children, teenagers in Bangladesh
14 hours ago | Lifestyle
No security threat ahead of Independence Day, Eid: Home Secretary
No security threat ahead of Independence Day, Eid: Home Secretary
14 hours ago | National
Reform initiative is fully homegrown, says CA’s press secretary
Reform initiative is fully homegrown, says CA’s press secretary
14 hours ago | National
CA to hold meeting with 127 high-rank police officers
CA to hold meeting with 127 high-rank police officers
14 hours ago | National
‘Chief Adviser to visit China Mar 26, meet President Xi Mar 28’
‘Chief Adviser to visit China Mar 26, meet President Xi Mar 28’
14 hours ago | National
Most Read
Train tickets for March 26 available online
Train tickets for March 26 available online
21 hours ago | National
Train commuters urged to buy Eid tickets from official app, counters
Train commuters urged to buy Eid tickets from official app, counters
17 hours ago | National
EU calls for international standard election in Bangladesh: CEC
EU calls for international standard election in Bangladesh: CEC
16 hours ago | National
Tarique Rahman takes responsibility for two Pabna orphans
Tarique Rahman takes responsibility for two Pabna orphans
18 hours ago | National
New Zealand romp to nine-wicket win in first Pakistan T20
New Zealand romp to nine-wicket win in first Pakistan T20
20 hours ago | Sports
Amitabh Bachchan returns as Ashwatthama in 'Kalki 2'
Amitabh Bachchan returns as Ashwatthama in 'Kalki 2'
23 hours ago | Entertainment
What does spending a long time in space do to the human body?
What does spending a long time in space do to the human body?
19 hours ago | Lifestyle
UN Secretary General leaves Dhaka
UN Secretary General leaves Dhaka
21 hours ago | National
Dhaka Central University to be established with 7 colleges
Dhaka Central University to be established with 7 colleges
16 hours ago | City
Sunlight exposure offers life-changing health benefits, experts say
Sunlight exposure offers life-changing health benefits, experts say
18 hours ago | Lifestyle
Protect us from misinformation: CA to UN chief
Protect us from misinformation: CA to UN chief
22 hours ago | National
BNP to introduce three secretary generals
BNP to introduce three secretary generals
20 hours ago | Special
Dhaka ranks 15th today in global air pollution
Dhaka ranks 15th today in global air pollution
22 hours ago | City
Bangladeshi migrant flow increases on Mediterranean route to Europe
Bangladeshi migrant flow increases on Mediterranean route to Europe
21 hours ago | National
10 timeless habits to reconnect and nourish your soul
10 timeless habits to reconnect and nourish your soul
19 hours ago | Lifestyle
Can aspirin help fight cancer?
Can aspirin help fight cancer?
20 hours ago | Lifestyle
Weather Forecast: Mild heat wave sweeps across several districts
Weather Forecast: Mild heat wave sweeps across several districts
21 hours ago | National
Peanut farming sees promising prospects in Panchagarh
Peanut farming sees promising prospects in Panchagarh
19 hours ago | Business
Bashundhara Shuvosangho distributes Iftar among job holders
Bashundhara Shuvosangho distributes Iftar among job holders
22 hours ago | Shuvosangho
David Warner set for Telugu film debut with cameo in ‘Robinhood’
David Warner set for Telugu film debut with cameo in ‘Robinhood’
21 hours ago | Entertainment
OpenAI and Musk agree to fast tracked trial over for-profit shift
OpenAI and Musk agree to fast tracked trial over for-profit shift
22 hours ago | Tech
Inclusive societies stronger, more resilient: Guterres
Inclusive societies stronger, more resilient: Guterres
23 hours ago | National
China’s Baidu unveils two new AI models amid rising competition
China’s Baidu unveils two new AI models amid rising competition
21 hours ago | Tech
Five protein-rich alternatives to meat during Ramadan
Five protein-rich alternatives to meat during Ramadan
21 hours ago | Lifestyle
NASA's stranded astronauts greet their replacements at space station
NASA's stranded astronauts greet their replacements at space station
20 hours ago | Tech
Blast from suspected old bomb in Syria kills 16
Blast from suspected old bomb in Syria kills 16
17 hours ago | International
Reforms to make Bangladesh one of the perfect democracies
Reforms to make Bangladesh one of the perfect democracies
20 hours ago | National
Death sentence of 20 BUET students in Abrar murder case upheld
Death sentence of 20 BUET students in Abrar murder case upheld
18 hours ago | National
Myanmar village air strike kills at least 12: Local official
Myanmar village air strike kills at least 12: Local official
19 hours ago | International
Judge temporarily blocks Trump's use of wartime powers to target Venezuelan gang members
Judge temporarily blocks Trump's use of wartime powers to target Venezuelan gang members
21 hours ago | International