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Indian exporters are worried, bad situation in Bangladesh will affect trade – AnyTV News

by Aaryan Srivastav
August 5, 2024
Indian exporters are worried, bad situation in Bangladesh will affect trade - India TV Hindi


Photo:FILE india bangladesh trade

domestic Exporters on Monday expressed concern over the crisis in Bangladesh and said that the developments in the neighboring country will have an impact on bilateral trade. Exporters, however, are hopeful that the situation may return to normal soon. According to exporters, they are already facing obstacles in exporting there due to the shortage of foreign currency in Bangladesh. Concerns have also increased over the perishable goods arriving at the Indian border for export to Bangladesh. Bangladesh Prime Minister Sheikh Hasina has resigned and an interim government is in power in the country.

will have an impact on business

More than 100 people have been killed in protests against the Hasina government in the last two days. Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO), said, “We are facing some disruptions due to the crisis in Bangladesh, but we hope that the situation will improve soon and trade will not face any challenge.” Sanjay Budhia, a West Bengal-based exporter and managing director of Patton, said that since the two countries have close economic and geographical ties, the crisis could have a significant impact on India’s trade.

These goods are exported

India exports a wide range of goods to Bangladesh, including cotton, machinery and food products, while importing items such as jute and fish. Supply disruptions could impact these sectors and any crisis that leads to border closure or heightened security could disrupt the flow of goods, Budhia said. FIEO regional chairman (east region) Yogesh Gupta said the developments would have an impact on bilateral trade. “Such incidents impact the movement of goods across borders,” he said.

Bangladesh is facing a huge dollar shortage

Sharing similar views, Praveen Saraf, owner of PSY Limited, said the crisis in Bangladesh will have long-term effects and will hurt bilateral trade. PSY Limited exports a number of commodities to Bangladesh, including spices, food grains and chemicals. Research institute GTRI said Bangladesh is facing a severe dollar shortage, which has limited its ability to import from other countries, including India. In addition, rising inflation has also reduced domestic demand. Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), said it is important to protect garment and other factories due to political turmoil in Bangladesh. Apart from this, it is also necessary to keep the cross-border supply chain open to maintain trade and economic activities.

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