After the coup in Bangladesh, trade between India and Bangladesh has started to slow down. Due to the ongoing political crisis in the neighbouring country, bilateral trade between the two countries has come to a halt for the time being. However, exporters are hopeful that the situation will be brought under control soon so that trade can become normal again. But the problem of Bangladesh is not limited to the political crisis only.
According to exporters, the foreign exchange crisis in Bangladesh is also creating problems in doing business. Bangladesh is already facing a huge shortage of dollars, due to which the country’s import capacity has been affected and imports from other countries including India have decreased.
Bangladesh is troubled by the shortage of dollars
Bangladesh is India’s largest trading partner in South Asia and ranks second among all the neighboring countries of India. If we talk in terms of figures, India exported goods worth $11 billion to Bangladesh in 2023-24, which was $12.21 billion in 2022-23. Along with this, imports from Bangladesh were $1.84 billion last year, while it was $2 billion 2 years ago. But the ongoing crisis has stopped the movement of goods across the border, due to which there are problems in crossing the border for perishable goods including vegetables and fruits.
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If these goods do not reach their destination quickly, then exporters may suffer huge losses. Items exported from India to Bangladesh include vegetables, coffee, tea, spices, sugar, confectionery, refined petroleum oil, chemicals, cotton, iron-steel and vehicles, while fish, plastic, leather and clothes are imported from there to India.
Inflation rate reduced demand in Bangladesh
Along with this, inflation in Bangladesh is also at a very high level due to which domestic demand has decreased there which is reducing imports by reducing consumption. Even before this, the weak economy of Bangladesh has also worked to reduce imports from India. Full tax is levied on goods exported from India to Bangladesh and the South Asian Free Trade Area Agreement does not apply to it. SAFTA rules apply to items imported from Bangladesh to India, due to which these items get the benefit of zero tariff in India.
Source (PTI) (NDTV) (HINDUSTANTIMES)