India and Bangladesh decided on Wednesday to share intelligence information to fight militancy.
This was decided at a meeting of information and broadcasting ministers of the two countries in New Delhi.
Both the countries are victims of militancy.
The visiting minister Hasanul Haq Inu and his Indian counterpart Venkaiah Naidu emphasised on the need to share intelligence information on regular basis.
"We think that we can combat terrorism through proper flow of information. The proper flow of information will defuse rumours, falsehood and distortion of history. That will have a better people's understanding to combat terrorism and that will help better understanding between the peoples of the two countries," said Inu.
On July 1, at least five Bangladeshi men had stormed the Holey Artisan Bakery, a cafe popular with foreigners, businessmen and diplomats and killed 20 customers, including Italians, Japanese, Indians and Americans.
There has also been a rise of Islamic militancy in Bangladesh with a spate of deaths of scholars and writers.
New Delhi apprehends that several militant groups active in the country's northeast often take shelter in the neighbouring country after committing a crime in India.
Of late, Bangladesh has handed over several militants wanted by India.
"We have come to the conclusion that dissemination of information is very vital for the progress of the country to fight poverty and also to fight terror, which is a common threat to all of us in this subcontinent," said Naidu.