Indian exporters are worried about disruptions in trade with Bangladesh due to the ongoing political crisis there. The resignation of Prime Minister Sheikh Hasina and violent protests have led to a foreign exchange shortage, affecting exports of perishable goods and other items. Exports to Bangladesh, including cotton, machinery, and food products, are facing challenges, with India’s exports dropping to USD 11 billion in 2023-24 from USD 12.21 billion in 2022-23. The crisis may impact trade flow and economic stability but could be mitigated with regional cooperation. Sectors like textiles and machinery could be notably affected.
