Mr. Mahmud also accused Pakistan of "indulging in foul play" by assisting the Bangladesh Nationalist Party and Bangladesh Jamaat-e-Islami, which are trying to fan “religious fanaticism and instability” in the country.
While lauding the Sheikh Hasina-led Awami League government in Bangladesh for restoring political stability and religious harmony, Mr. Mahmud said, "When the BNP was in power, religious harmony was affected and fanatic elements had destabilised the country, destroying peace between communities."
"So, if the Awami League is not in power, the same will happen again. That will have an impact in India as well," Mr. Mahmud told PTI in an interview.
When asked whether bilateral relations with India will be affected if the Awami League is not in power in Bangladesh, he asserted, "Of course, it will. Definitely it will (have an impact on ties)," he said.
The general elections in Bangladesh are likely to be held at the end of this year.
He claimed that the BNP's politics revolves around "anti-India and anti-Hinduism rhetoric".
"On the other hand, as Awami League is a secular party, it provides political stability and religious harmony in the country," he said.
Mr. Mahmud said there are enough evidence that Pakistan is providing help to BNP and Jamaat.
"Pakistan is helping Jamaat and BNP. They have taken money from that country in previous elections. There is a confessional statement of a former ISI chief in a Pakistan court that they gave few crores of Taka to BNP before 1991 elections," he said.
When asked whether the Bangladesh government fears Pakistani "foul play" during this year's election as well, Mahmud said they "always try to do that as they are with the BNP and against Awami League."
"But we want good relations with Pakistan as well. We have diplomatic relations with them," he said.
On the "growing closeness" between Dhaka and Beijing, Mr. Mahmud said the ties between India and Bangladesh cannot be compared with any other relationship.
The time-tested bilateral relations between India and Bangladesh have been “bonded in blood”, he said.
"Our foreign policy is friendship with all and malice to none. So we have relationships with all countries — U.S., China, and European nations. But the relationship with India is different; It cannot be compared with any other country," he said.
Mr. Mahmud said, "The relationship between Bangladesh and India is bonded in blood. Because when the people of Bangladesh fought for the country's liberation, Indian soldiers also fought for us and sacrificed their lives. Relationships with any other country will not hamper the relationship between India and Bangladesh."
Speaking on the Teesta water-sharing treaty, he said the intention of the Indian government is very positive.
"We see that the Government of India is trying to find a solution, but you have internal issues, and according to the Indian Constitution, you need the consent of the state government. But we see the intention of the Indian government is very positive," he said.
India and Bangladesh were set to ink a deal on Teesta water sharing during the then Prime Minister Manmohan Singh's Dhaka visit in 2011. West Bengal Chief Minister Mamata Banerjee had declined to endorse it, citing water scarcity in her state.
Mr. Mahmud said under the leadership of Bangladesh Prime Minister Sheikh Hasina and Indian Prime Minister Narendra Modi, the relations between both nations have reached a new high, and the bilateral relationship in each sector has strengthened.
"Recently, we have started trade by exchange of Rupee and Taka, and that is a very new dimension (in bilateral ties)," he said.
Bangladesh and India recently launched a much-anticipated trade transaction in Rupees, a move aimed at reducing dependence on the U.S. dollar and strengthening regional currency and trade.
The Governor of Bangladesh's central bank has recently said the transaction costs during trade with India will reduce with the introduction of the Taka-Rupee dual currency card, which was "almost ready to be launched from September."
When asked whether the ethnic violence in Manipur impacts Bangladesh, as the country also has a minuscule Kuki tribe population, the Minister replied in negative.
"Manipur (crisis) is an internal matter of India, and so far, it has no bearing or impact on Bangladesh," he said.