Bangladesh suffered a loss of about Rs 1 lakh crore due to the latest dispute. Bangladesh achieved a growth rate of 7.2 percent after the pandemic. Bilateral trade with India is around $14 billion.
New Delhi. In early 2024, when Sheikh Hasina took over as the Prime Minister of Bangladesh for the fourth time, not only did India’s hopes rise, but the people of Bangladesh also felt that now their country will be included in the list of developing countries, if not developed. For this, a target of 2026 was also set. Meanwhile, when India also set a target of making itself a 5 trillion dollar economy by 2027, the expectations of the neighboring country from us increased even more. These hopes got wings when PM Narendra Modi also took over the reins of India for the third time in June. Everything was going according to plan when Bangladesh made a mistake, after which the whole matter and scene changed.
Today, on Monday, Bangladesh PM Sheikh Hasina not only resigned from her post, but she also had to leave her country. Bloody riots broke out in Bangladesh over the issue of reservation in which many youth lost their lives. Although this issue is an internal matter of Bangladesh, but most of its economy depends on other countries. Therefore, the effect of these riots is directly visible on its economy. We investigate how much a mistake cost Bangladesh on the basis of some data.
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The economy had become stronger
Before presenting the loss suffered by Bangladesh, let us tell you about its strengths. Bangladesh was formed in the year 1975 and at that time the poverty rate in this country was more than 83 percent, which had fallen to 20.5 percent by 2020. The per capita income of the country was also $ 1,827 while the risk of the economy also fell to below 32. Overall, this country was on the verge of being included in the list of developing countries by the year 2026, fulfilling all the standards of the United Nation. Bangladesh’s economy achieved a growth rate of 7.2 percent after the pandemic, which is quite strong.
Foreign investment was on the rise
You know that Bangladesh is largely dependent on foreign economy and foreign investment has also increased here. Global rating agencies gave this country a good rating due to which the confidence of investors increased and multinational companies from many countries including Europe set up their manufacturing here. Recently, Bangladesh’s economy has also crossed the figure of 455 billion dollars. Bangladesh exports clothes worth 5 billion dollars to America and 12.5 billion dollars to Europe every year.
what will be the loss now
Due to the protests going on in Bangladesh for about 2 weeks, a loss of more than 1 lakh crore rupees has been incurred so far. Currently, the army has taken control of the country and declared a 3-day shutdown. Due to this, import-export has come to a complete halt and all ports have been closed. Freight and transport services have also come to a halt, which can increase the country’s losses by two to three times in the coming 3 days.
There will be an impact on investors
Foreign investors have invested a lot of money in the country and due to this protest and shutdown, they may have to suffer huge losses. Obviously, this will also affect the intentions of foreign investors and due to the army being in control, the country’s policy may once again go into a phase of uncertainty. This will have a direct impact on the country’s domestic and foreign investment, due to which the pace of the economy will also definitely slow down.
Big impact on business
The country’s economic activities have also been adversely affected due to the unstable environment, shutdowns and protests. This will have a direct impact on the manufacturing of local companies. Obviously, this will reduce production and if the market demand is not met, inflation will definitely increase, the brunt of which will ultimately be borne by the common man. Many companies have units in Bangladesh that produce clothes. If this is affected, the prices of branded clothes imported from abroad may also rise.
Impact on trade with India
India and Bangladesh not only share a 4,092 km border, but both countries are also very close in terms of trade. Obviously, any stability in Bangladesh can also affect India’s border security. It is also likely to affect bilateral trade and supply chain. India is Bangladesh’s second largest partner in Asia. In the financial year 2023-24, Bangladesh sent goods worth about 17 thousand crores to India, while the total trade between the two countries was $ 14 billion (Rs 1.16 lakh crore).
India has invested 70 thousand crores
India has invested about 70 thousand crore rupees in various development projects of Bangladesh. It is obvious that the problem that has come with it can also affect this investment of the country. India has invested money in many infrastructure projects including building roads, railways and shipping yards. According to an estimate, India has invested money in about 93 projects in Bangladesh.
Bangladesh, bangladesh news, Business news
FIRST PUBLISHED : August 5, 2024, 19:33 IST
