Indian Prime Minister Manmohan Singh has begun a visit to Bangladesh during which he is expected to sign major border security and trade deals.
It is the first visit by an Indian prime minister in 12 years and is being seen as a landmark in relations.
Correspondents say the two-day trip is partly aimed at countering growing Chinese influence in the region.
However a deal to share river water appears unlikely because of reported objections from the Indian side.
The chief minister of the Indian state of West Bengal withdrew from the trip, reportedly over the proposed Teesta river water treaty.
Mamata Banerjee did not give any official reason for her decision but media reports said she felt that India had agreed to supply too much water to Bangladesh.
Ties between the neighbours have been marked by years of mistrust, but both sides now appear keen to improve their relations.
Mr Singh is returning a visit to Delhi by his Bangladeshi counterpart Sheikh Hasina in January last year.
"We attach the highest importance to further developing and strengthening our relations with Bangladesh," Mr Singh said before arriving in Dhaka. "Our partnership with Bangladesh is important for the stability and prosperity of our own north-east region."
Bangladesh's Foreign Minister Dipu Moni described Mr Singh's trip as "historic".
"It will pave the way for a prosperous future for the whole region," he told reporters.
Border enclaves
Tens of thousands of people living on the India-Bangladesh border are hoping for positive news from boundary negotiations when the leaders meet on Tuesday, the BBC's Anbarasan Ethirajan in Dhaka says.
Residents in some 50 Bangladeshi enclaves inside India and about 100 Indian areas inside Bangladesh say they are effectively stateless.
The two countries are expected to finalise a deal exchanging the territories during Mr Singh's visit.
India is also negotiating to use Bangladesh's road and rail network to send goods to its nearly land-locked north-east. In return, Bangladesh wants right of passage across India to trade with neighbouring Nepal and Bhutan.
India has already announced a $1bn loan to improve Bangladesh's transport infrastructure.
India's recent attempts to reach out to its smaller neighbours are motivated in part by anxiety about China's growing role in the region, observers say.
China is Bangladesh's biggest trading partner, as well as its main supplier of military equipment.
As Beijing and Delhi compete for influence in the region, many in Bangladesh hope their government will do a careful balancing act and extract more trade concessions from the two regional powers, our correspondent says.
Mr Singh is accompanied by the chief ministers of four Indian states which border Bangladesh - Assam, Tripura, Mizoram and Meghalaya.
Source: BBC
www.bbc.co.uk
It is the first visit by an Indian prime minister in 12 years and is being seen as a landmark in relations.
Correspondents say the two-day trip is partly aimed at countering growing Chinese influence in the region.
However a deal to share river water appears unlikely because of reported objections from the Indian side.
The chief minister of the Indian state of West Bengal withdrew from the trip, reportedly over the proposed Teesta river water treaty.
Mamata Banerjee did not give any official reason for her decision but media reports said she felt that India had agreed to supply too much water to Bangladesh.
Ties between the neighbours have been marked by years of mistrust, but both sides now appear keen to improve their relations.
Mr Singh is returning a visit to Delhi by his Bangladeshi counterpart Sheikh Hasina in January last year.
"We attach the highest importance to further developing and strengthening our relations with Bangladesh," Mr Singh said before arriving in Dhaka. "Our partnership with Bangladesh is important for the stability and prosperity of our own north-east region."
Bangladesh's Foreign Minister Dipu Moni described Mr Singh's trip as "historic".
"It will pave the way for a prosperous future for the whole region," he told reporters.
Border enclaves
Tens of thousands of people living on the India-Bangladesh border are hoping for positive news from boundary negotiations when the leaders meet on Tuesday, the BBC's Anbarasan Ethirajan in Dhaka says.
Residents in some 50 Bangladeshi enclaves inside India and about 100 Indian areas inside Bangladesh say they are effectively stateless.
The two countries are expected to finalise a deal exchanging the territories during Mr Singh's visit.
India is also negotiating to use Bangladesh's road and rail network to send goods to its nearly land-locked north-east. In return, Bangladesh wants right of passage across India to trade with neighbouring Nepal and Bhutan.
India has already announced a $1bn loan to improve Bangladesh's transport infrastructure.
India's recent attempts to reach out to its smaller neighbours are motivated in part by anxiety about China's growing role in the region, observers say.
China is Bangladesh's biggest trading partner, as well as its main supplier of military equipment.
As Beijing and Delhi compete for influence in the region, many in Bangladesh hope their government will do a careful balancing act and extract more trade concessions from the two regional powers, our correspondent says.
Mr Singh is accompanied by the chief ministers of four Indian states which border Bangladesh - Assam, Tripura, Mizoram and Meghalaya.
Source: BBC
www.bbc.co.uk
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