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India and Bangladesh have opened a new chapter in their ties as they settled the 41-year-old boundary dispute and promised to do more in other areas amid Prime Minister Narendra Modi’s announcement of a fresh line of credit of $2 billion to the neighbouring country. The Land Boundary Agreement (LBA) paves the way for exchange of territories to settle the 41-year-old border dispute. Under the Agreement, 111 border enclaves will be transferred to Bangladesh in exchange for 51 that will become part of India.
After extensive talks between Modi and Bangladesh Prime Minister Sheikh Hasina, the two sides signed 22 agreements, including cooperation in maritime safety and efforts against human trafficking. In a major effort to enhance connectivity and people-to-people contact, two bus services —Kolkata-Dhaka-Agartala and Dhaka-Shillong-Guwahati —were flagged off jointly by Modi, Hasina and Mamata. Hasina said the two countries agreed to set up two special economic zones to bridge the growing trade deficit.
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