Bangladesh’s interim Chief Adviser and Nobel Laureate, Muhammad Yunus, has publicly highlighted growing diplomatic tensions between Dhaka and New Delhi, attributing much of the strain to India’s continued support and sheltering of former Prime Minister Sheikh Hasina. Speaking at the United Nations General Assembly session in New York, Yunus emphasized that last year’s student-led protests, which led to Hasina’s ouster, marked a critical turning point in bilateral relations.

Yunus asserted that the core of the strained ties lies in India’s refusal to acknowledge the political changes following the collapse of Hasina’s 16-year tenure. “India’s harboring of Sheikh Hasina, who fled to India after violent mass protests in August 2024, is perceived in Dhaka as an obstruction to Bangladesh’s internal political process,” Yunus said, noting that this has significantly heightened tensions between the two nations.

The interim government in Dhaka has officially requested India to extradite Hasina to face charges related to alleged crimes against humanity during her time in office. While India has acknowledged receiving the extradition request, it has maintained a cautious stance, highlighting the complex geopolitical and legal implications involved. Yunus also criticized the Indian media for spreading misinformation regarding the student protests, refuting claims that they were Islamist-led movements. “The dissemination of false narratives further complicates public perceptions and bilateral discourse,”.

Amid these challenges, Yunus called for a revival of regional cooperation in South Asia. He expressed concern over the stagnation of the South Asian Association for Regional Cooperation (SAARC), largely stalled due to political disagreements, and proposed a vision for regional integration similar to the European Union model. He suggested that free movement of people and commerce across borders could unlock economic potential. In cases where reviving SAARC proves unfeasible, Yunus recommended a smaller, business-focused regional alliance as an alternative.

Bangladesh is also exploring closer ties with Southeast Asian groups such as ASEAN to diversify its regional partnerships. With its strategic location along the Bay of Bengal, Bangladesh could serve as a gateway linking landlocked regions of Nepal, Bhutan, and northeastern India to maritime trade routes, potentially reshaping regional economic dynamics.

The ongoing diplomatic impasse underscores the delicate balance between political asylum, justice, and regional cooperation. The continued presence of Sheikh Hasina in India, coupled with Bangladesh’s pursuit of accountability and reform, presents a complex challenge for two neighbors who share deep historical, cultural, and economic ties but are now navigating a period of strained relations.