India has offered a one billion U.S. dollar line of credit to Bangladesh as the two neighboring nations inked a slew of pacts on fighting terror in the Indian national capital late on Monday. 'Bangladesh is committed to eliminate all forms of terrorism from inside its territory. Bangladesh shall not allow its territory to be used for launching terrorist activities against any country in the neighborhood,' said visiting Bangladeshi Prime Minister Sheikh Hasina, who signed the five agreements with his Indian counterpart Manmohan Singh. Backing the commitment are three agreements on countering terrorism with both sides agreeing to extradite criminals convicted in either country. Also an agreement on transfer of sentenced persons being held in either country's jails and an umbrella agreement on combating international terrorism, organized crime and drugs trafficking have been signed. Political analysts claim that the signing of the pacts and India's offer of credit line were 'a remarkable step' forward as both the countries are scripting a new relationship to keep the neighborhood terror-free. 'Not only India's one billion U.S. dollar of credit line is said to be New Delhi's biggest such offer to any country, but the welcome Hasina got in the national capital clearly signifies that India is willing to extend all assistance to Bangladesh to ensure a terror-free neighborhood,' said political analyst Ajay Singh. 'The Guard of Honor at Rashtrapati Bhavan (Indian President's official residence) for Hasina had a far greater significance than any other in the recent past. This means India is applauding her determination to ensure that Bangladesh doesn't remain the second front of Islamic terror in South Asia. Both the countries want a terror-free neighborhood,' said Singh. Internal security expert Ravi Dawa agreed, saying 'India acknowledges that Bangladesh is committed to exchanging intelligence on terrorism. Hasina's government is cracking down on terrorists and is not willing to allow any anti- India activities on its soil.' Indian Finance Minister Pranab Mukherjee said 'Now India understands Bangladesh's concerns and they understand ours.' Apart from one billion U.S. dollar line of credit, India has also agreed to release power to Dhaka through the eastern grid, a move expected to go a long way in addressing Bangladesh's electricity woes. 'Indian External Affairs Secretary Nirupama Rao said on Sunday that New Delhi remains committed to giving substantial assistance to Bangladesh and becoming a major partner in its economic development. The offer of one billion U.S. dollar of credit line indicates a goodwill gesture on India's part because Dhaka agreed to signing the anti-terror pacts,' said political scientist S.K. Gupta. 