Indian Prime Minister Narendra Modi has said that Bangladesh is India's largest development partner and the largest regional trade partner.
He said India will start talks on a comprehensive economic partnership agreement (CEPA) with Bangladesh.
"We also decided to increase cooperation in sectors such as IT, space and nuclear energy," Modi said after holding talks with his Bangladeshi counterpart Sheikh Hasina, who is on a four-day visit to India.
Both countries have been involved in a joint study on the CEPA, which has been in discussions between the two neighbours for many years.
Meanwhile, Prime Minister Sheikh Hasina said she and her host Indian premier Narendra Modi reaffirmed their resolve to sign an agreement on sharing the water of the Teesta River that runs through the two neighboring countries.
She said they both agreed to pursue collaborative efforts to sustain their economic growth and maintain peace, security and stability in the two countries and in the region.
