India has agreed to extend US$ 1 billion line of credit to Bangladesh. On the sidelines of the meeting between Prime Minister Manmohan Singh and visiting Bangladesh Premier Sheikh Hasina, India has signed five accords with Bangladesh. 

This is the biggest financial assistance that India has offered to any other country The money will be reportedly utilized in supply of coaches, and locomotives and buses, construction of railway bridges etc.  India will also be looking forward to supplying of 250 MW of electricity to Bangladesh.

The two countries are also planning to launch Akhara-Agartala rail link. The visiting Bangladesh Premier is to be conferred the Indira Gandhi Prize for Peace, Disarmament and Development. Minister of State for External Affairs Shashi Tharoor said that India is looking forward to a change in its relationship with Bangladesh.