Crisil Ratings: Impact of Bangladesh Developments on India’s Trade

Crisil Ratings reported that recent developments in Bangladesh haven't significantly impacted India's trade or the credit quality of India Inc. While certain sectors may face challenges, the overall effect is considered manageable. Companies with manufacturing in Bangladesh and export-oriented industries may experience operational delays and revenue impacts.

Crisil Ratings on Tuesday announced that recent developments in Bangladesh have not significantly impacted India's trade or the credit quality of India Inc. The impact varies across different industries and exposures.

"We do not foresee any near-term impact on the credit quality of India Inc either," the agency stated, though it warned that prolonged disruption could affect revenue profiles and working capital cycles in export-oriented sectors.

Industries such as footwear, FMCG, and soft luggage could see some impact due to initial operational challenges. Engineering firms engaged in Bangladeshi projects might face delays as many workers have returned to India.

(With inputs from agencies.)