Political Turmoil in Bangladesh Strains Crucial Trade Ties with India

The ongoing political unrest in Bangladesh is impacting the long-standing trade relationship with India. Both nations have been major trading partners, but instability is threatening key sectors, including cotton and garments. Experts emphasize the need to protect economic activities amid the turmoil to prevent further disruption.

The persistent political unrest in Bangladesh is now significantly straining its crucial trade relationship with India, a partnership that has remained robust for years. This disturbance threatens various sectors vital to economies on both sides of the border.

In the fiscal year 2023-24, bilateral trade between India and Bangladesh reached Rs 1,35,285 crore, with India maintaining a substantial trade surplus. India exported goods worth Rs 91,614 crore against imports of Rs 15,268 crore from Bangladesh, resulting in a trade surplus of Rs 76,346 crore, according to data from the Ministry of Commerce.

Ajay Srivastava, founder of the Global Trade Research Initiative, emphasizes India's vested interest in a stable Bangladesh. "India supports Bangladesh's economic stability and peace in the region. Political turmoil must not disrupt supply lines and factory operations," said Srivastava. The unrest threatens exports in sectors such as cotton yarn, impacting Indian farmers, and key imports like ready-made garments, which are crucial to India's textile industry.

(With inputs from agencies.)