India on Thursday denounced the reported destruction of a Durga temple in Dhaka and said it is the responsibility of Bangladesh's interim government to protect Hindus as well as religious institutions.

External Affairs Ministry spokesperson Randhir Jaiswal also said India is prepared to engage with Bangladesh on "all matters" in an environment that is conducive for mutually beneficial dialogue.

His remarks came in response to a question on possible renewal of Ganges water treaty with Bangladesh next year.

Jaiswal was critical of Bangladeshi authorities for the reported destruction of the temple.

"We understand that extremists were clamoring for demolishing the Durga temple in Khilkhet, Dhaka," he said.

"The interim government, instead of providing security to the temple, projected the episode as illegal land use...and they allowed the destruction of the temple today," he said.

"This has resulted in damage to the deity before it was shifted. We are dismayed that such incidents continue to recur in Bangladesh," he added.

Jaiswal underlined that it is the responsibility of the interim government of Bangladesh "to protect Hindus, their properties, and religious institutions." Asked about India's decision to curb Bangladeshi exports via land ports, he said the measures were based on Dhaka's own quest for "fairness, equal treatment, and reciprocity".

"We await resolution of the underlying issues pending with the Bangladeshi side for a long time. These issues have been raised by India at several structured meetings earlier, including at the Commerce Secretary level talks," he said.

Last month, India decided to curb Bangladeshi exports of ready-made garments and several other consumer goods through land ports with an aim to ensure fairness and equality in bilateral trade.

The new restrictions for Bangladeshi consumer goods were imposed weeks after New Delhi ended a nearly five-year-old arrangement for trans-shipment of Bangladeshi export cargo to third countries via Indian airports and ports.

There has been a sharp downturn in India-Bangladesh relations after deposed prime minister Sheikh Hasina fled Dhaka and took shelter in India in August last year in the face of a massive anti-government protest.

The relations nosedived dramatically after the interim government headed by Muhammad Yunus failed to contain attacks on minorities, especially Hindus, in that country.

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