Bangladesh's Political Instability Sparks Concerns Among Indian Exporters

New Delhi, Aug 6 (KNN) In light of recent political turmoil in Bangladesh, Indian exporters have expressed apprehension about the potential impact on bilateral trade relations.

The situation in the neighbouring country has already caused disruptions, particularly affecting the export of perishable goods at the border.

Indian exporters, who have been grappling with payment delays due to Bangladesh's foreign exchange shortage, fear that the current political instability may exacerbate existing challenges.

India's exports to Bangladesh, which include cotton, machinery, and food products, have already seen a decline from USD 12.21 billion in 2022-23 to USD 11 billion in 2023-24.

Imports from Bangladesh, primarily consisting of jute and fish, have also decreased from USD 2 billion to USD 1.84 billion during the same period.

Despite these concerns, some remain optimistic. Ajay Sahai, Director General, Federation of Indian Export Organisations (FIEO), expressed hope that the situation would normalise soon, allowing trade to continue without significant challenges.

The Global Trade Research Initiative (GTRI) highlighted the importance of protecting garment and other factories, as well as maintaining open supply lines across the border to sustain economic activity.

GTRI founder Ajay Srivastava noted that Bangladesh's economic challenges have already negatively impacted bilateral trade in recent years.

As the largest trade partner in South Asia for India, and India being the second-largest trade partner for Bangladesh in Asia, the stability of their economic relationship holds significant importance for the region.

Experts stress the need for a balanced approach, considering both geopolitical and economic factors, to navigate the current crisis and maintain economic stability and growth.

(KNN Bureau)