Dhar talks about how the political instability in Bangladesh may disrupt its financial development and, in flip, have an effect on Indian exports and investments. “When there’s political uncertainty of the sort that we’ve got seen in Bangladesh, there’s going to be financial uncertainty that follows,” he notes.
Dhar highlights the importance of Bangladesh as a buying and selling companion for India, significantly within the context of exports.
Within the fiscal yr 2021–22, Bangladesh was India’s fourth-largest export market, a place that has since slipped to sixth because of India’s restrictions on wheat and rice exports. “India’s exports to Bangladesh have been rising, however the current political turmoil may have an effect on this pattern considerably,” Dhar warns.
The dialogue additionally touches on the impression of the unrest on the textile trade, a vital sector for each international locations. Bangladesh, identified for its strong garment trade, has been a key a part of India’s provide chain, particularly for yarn and materials. Nonetheless, the continued turmoil threatens to disrupt this provide chain. “The garment trade has suffered massively on this political turmoil, and because of this, the entire provide chain goes to get disrupted.” Dhar explains.
Past textiles, the podcast explores the broader implications for Indian companies working in Bangladesh, together with these within the FMCG sector, private care, and even IT companies. Dhar factors out that Indian firms have more and more been establishing operations in Bangladesh to reap the benefits of decrease wage prices. “Indian firms have been going into Bangladesh, they usually had been truly making an attempt to piggyback on Bangladesh’s success in clothes to entry the worldwide market,” Dhar notes.
The dialog additionally appears to be like on the potential Free Commerce Settlement (FTA) between India and Bangladesh, which has been within the works. Dhar is optimistic concerning the FTA, stating that it might be a “win-win” state of affairs for each international locations. He emphasises the necessity for India to keep up robust financial ties with Bangladesh, no matter the political adjustments in Dhaka. “The robust financial relations which have developed between the 2 international locations ought to be a powerful sufficient purpose for the brand new authorities to proceed relations with India,” Dhar provides.
Hearken to the podcast to study extra.
(Host: Amiti Sen; Producer: Siddharth Mathew Cherian)
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