Indian Prime Minister Narendra Modi, his Bangladesh counterpart Sheikh Hasina and West Bengal Chief Minister Mamata Banerjee jointly inaugurated Kolkata-Dhaka-Agartala and Dhaka-Shillong-Guwahati bus services this afternoon.

The three leaders met at the Bangladesh Prime Minister's Office (PMO) to launch the bus services, which will run through key cities of the two neighbouring countries, in a move being seen as Bangladesh allowing road transit to India, a long standing Indian demand.

It is one of key development during the visiting Indian premier's maiden Bangladesh trip that began today.

It will be the first direct bus service connecting Kolkata and northeastern India through Bangladesh.

Before his arrival at the PMO, the Indian premier met with Mamata at Hotel Pan Pacific Sonargaon around 3:00am.

Modi reached the capital amid high hopes for strengthening economic and trade ties between the two neighbouring countries.

Mamata meanwhile reached Dhaka last evening to attend some official programmes with the Indian prime minister. She is expected to be present during exchange of Instrument of Ratification of the historic Land Boundary Agreement.