In a significant recalibration of its regional connectivity strategy, India has reportedly put on hold railway projects worth over ₹5,000 crore in Bangladesh, redirecting its focus toward developing alternative rail corridors through Nepal and Bhutan.
The decision comes amid growing concerns over political instability in Bangladesh and heightened risks to Indian infrastructure workers, according to people familiar with the matter. Among the affected projects are the Akhaura–Agartala cross-border link, the Khulna–Mongla Port rail line, and the Dhaka–Tongi–Joydebpur rail expansion—flagship components of India’s effort to bolster transport and trade connectivity with Bangladesh under the “Neighbourhood First” policy. Although there has been no official confirmation from India’s Ministry of External Affairs, officials indicate that the move is part of a broader strategic shift toward more politically stable and environmentally aligned partners in the Himalayan region.
India is now fast-tracking cross-border connectivity through Nepal and Bhutan. A priority project under consideration is the proposed rail link between Kokrajhar in Assam and Gelephu in Bhutan. The line is expected to serve dual purposes: strengthening connectivity to India’s Northeast and promoting Bhutan’s eco-tourism and hydropower trade potential. Similarly, Indian Railways is exploring additional rail links with Nepal, including the expansion of the Jayanagar–Bardibas corridor and new freight-oriented corridors to support bilateral trade and inland logistics. Sources within India’s infrastructure planning ecosystem say these corridors align more closely with India’s long-term sustainability goals and offer lower carbon alternatives to conventional freight routes. Bhutan, in particular, has embraced a net-zero development strategy, making it a favourable partner in India’s green diplomacy efforts.
In parallel, India is ramping up efforts to decongest the Siliguri Corridor—known as the “Chicken’s Neck”—by doubling and quadrupling key rail lines in Uttar Pradesh and Bihar. These upgrades aim to strengthen connectivity to the Northeast without over-reliance on Bangladesh transit routes, a concern heightened by recent cross-border tensions and competing Chinese infrastructure investments in the region.
“This is not an abrupt disengagement from Bangladesh, but rather a long-overdue diversification strategy,” said a senior government official, speaking on condition of anonymity. “Our goal is to enhance resilience, especially for the Northeast, through secure, stable and sustainable infrastructure partnerships.” India’s pivot is also driven by the need to counter China’s Belt and Road Initiative (BRI), which has deepened Beijing’s influence in Bangladesh through infrastructure and port investments. By partnering more deeply with Nepal and Bhutan—nations that remain strategically closer to India—New Delhi is seeking to consolidate its regional leadership while embedding ecological considerations into its connectivity roadmap.
For urban planners, infrastructure stakeholders, and environmental think tanks, this marks a shift in how mega infrastructure is being conceived—not just through the lens of diplomacy or logistics, but also sustainability. As one policy analyst put it, “The future of regional trade will not just be about faster movement of goods, but greener, safer, and more geopolitically secure corridors.”
India Halts Rs 5,000 Crore Rail Projects in Bangladesh, Eyes Alternatives in Nepal and Bhutan
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