In September 2011, which two countries signed a pact to end a 40 year border demarcation dispute?

India and Bangladesh sign a pact to end their 40-year border demarcation dispute.

No country is an island. Every nation depends on another for support. India is no exception. And so is Bangladesh. India and Bangladesh even have close relationship because Bangladesh was once a part of India called East-Pakistan that got divided later into an independent nation in 1971.

Because of porous India-Bangladesh border and other reasons such as the absence of paper work, access to good markets, high duties in official channels, very less scope of lesser time to reach the destination for perishable goods, shortage of warehouse facilities etc. led to perpetual illegal and informal trading practices between India and Bangladesh. Issue of balance of payments also arose due to the illegal migrants remitting their earnings in a foreign land through informal channels. The magnanimity of informal trade coincides with formal trade. Formal trade accounts for country’s GDP but informal doesn’t.