India extends $1-billion credit line to Dhaka - its largest ever

New Delhi: In an unprecedented gesture, India has extended $1 billion as line of credit to Bangladesh for economic development. This is the largest assistance ever provided by India to any country and underscores the importance New Delhi attaches to enhancing bilateral ties with Dhaka.

The Prime Minister of Bangladesh, Ms. Sheikh Hasina inspecting the Guard of Honour, at the ceremonial reception, at Rashtrapati Bhavan, in New Delhi

Also, on Monday, both nations signed five pacts after discussions between prime minister Manmohan Singh and Sheikh Hasina.  The two leaders held discussions for over an hour with focus on security and developmental issues.

The Indian side has let it be known to their Bangladeshi counterparts that Sheikh Hasina's visit was a historic one and heralded a new chapter in bilateral ties.

On an issue of great concern to India, the Bangladeshi side provided an assurance that its soil would no longer be used for anti-India activities. Both sides also agreed to resolve all issues through dialogue.

Apart from issues of counter-terrorism and security, the two sides also discussed economic and trade issues. It was decided that a comprehensive framework for development would be set by both nations.