India faces its toughest strategic challenge in Bangladesh since the 1971 Liberation War, a Parliamentary panel has said. The Standing Committee on External Affairs, led by MP Shashi Tharoor, released a report on December 18, 2025. The report points to a big shift in Bangladesh's politics that could push India aside. It refers to changes like the fall of the Awami League government on August 5, 2024, the rise of youth-led nationalism, return of Islamist groups, and increased Chinese and Pakistani influence. Quoting an expert, the report said, "India faces its greatest strategic challenge in Bangladesh since the Liberation War of 1971.... Today, the threat is subtler but probably graver, more serious; a generational discontinuity, a shift of political order, and a potential strategic realignment away from India." The Panel praised India's decision to offer shelter to ousted Prime Minister Sheikh Hasina but stressed New Delhi must prevent her from conducting political activities on Indian soil. Foreign Secretary Vikram Misri told the committee that Hasina uses "personal communication devices" for statements, and India "does not provide her with a political platform or any political space". Bangladesh’s interim government has banned the Awami League's political activities. The party is expected to skip the February 2026 elections. The report highlights the rise of a new political party, the National Citizen Party, and the Jamaat-e-Islami’s return with restored electoral rights. It warns that the continued ban on Awami League questions election inclusiveness. On water issues, talks between India and Bangladesh on the Ganga Water Treaty, expiring in December 2026, have not yet started. The report recommends that "Government of India should initiate bilateral discussions with Bangladesh at the earliest to avoid any vacuum post-2026 period." This detailed report marks a wake-up call for India amid fast-changing political currents in its eastern neighbour.