Prime Minister Narendra Modi on Saturday assured his Bangladeshi counterpart Sheikh Hasina, who arrived in New Delhi on Friday on a four-day visit, of "early" solution to the Teesta water sharing issue.
India has offered two lines of credit - $4.5 billion for development assistance and $500 million for defence-related procurement - to Bangladesh.
PM Narendra Modi said the Teesta pact is important for India-Bangladesh relationship and expressed hope that the West Bengal Chief Minister will eventually support it.
An Indian source said the government had taken note of her comments in an article in which she pointed out that there were some issues like sharing of water of common rivers that needed to be resolved.
Both the countries also agreed on a financing agreement for the construction of 36 community clinics in Bangladesh apart from signing a pact on extending a third Line of Credit (LoC) by India to Bangladesh.
#WATCH: This amusing moment happened live at Hyderabad House during PM Modi and Bangladesh PM Sheikh Hasina's joint statement. "I thank Bangladesh for this emotional initiative", Modi said.
In 2015, Modi signed a historic land border pact with Dhaka, removing a major irritant and infusing a new warmth between the two countries that share a 4,097 kilometre-long porous border.
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Prime Minister Hasina will be presenting a silver boat each for Indian Finance Minister Arun Jaitley, State Minister for External Affairs Vijay Kumar Singh and State Minister for Heavy Industries and Public Enterprises Babul Supriyo.
Additionally, the two leaders jointly inaugurated a bus service, that will run between Kolkata, Khulna and Dhaka; a new passenger train service from Khulna to Kolkata through Petrapole from the Indian side and Benapole from the Bangladesh side; and a new rail link between Radhikapur and Birol for running goods trains.
"The story of their sacrifice will be remembered from generation to generation in our countries", Prime Minister Hasina said in her statement while exhorting both countries to work towards "shared peace and prosperity".
Over 20 agreements, including a civil nuclear agreement and two Memorandums of Understanding (MoUs) on defence cooperation, were signed after Saturday's bilateral talks between India and Bangladesh.
Hasina called India the "most important neighbour and one of key development partners of Bangladesh" also recalling its invaluable contribution to Bangladesh's 1971 Liberation War for which "we are deeply grateful".
Bangladesh Prime Minister Sheikh Hasina, now on a high-profile visit to New Delhi, spent three days in Tripura in 2012, the first by any foreign head of government.
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