Trade Between India-Bangladesh at stand still now: FIEO
Aug 06, 2024
New Delhi [India], 6 August : As of now, borders are not functioning, so more or less export and import activities with Bangladesh are at a standstill, said Ajai Sahai, Director General and CEO of the Federation of Indian Export Organisations (FIEO), in an exclusive interview with ANI.
Sahai mentioned, "Further investment in Bangladesh definitely must have been put on hold, but beyond that, I think they are simply watching the situation and hoping that it normalizes so business can continue as usual."
The FIEO DG stated that disruptions have been visible for the last fortnight, impacting exports to some extent. While perishable exports were continuing as usual, they too have been affected since yesterday.
Erratic internet has posed challenges in the banking sector, further impacting exports. However, feedback from Indian exporters in contact with their Bangladeshi counterparts suggests that the problem may be short-lived, and normalcy could be restored soon, allowing business to resume as usual.
FIEO is in close touch with exporters who have businesses in Bangladesh. Sahai said that those who have invested in Bangladesh are concerned at this point, and some with urgent orders are looking to execute those supplies from India to meet customer requirements. Currently, they are not making definitive decisions on how to handle the situation.
In the last financial year, bilateral trade between India and Bangladesh was around USD 12.8 billion, with India having a trade surplus.
India's exports to Bangladesh were approximately USD 11 billion, including commodities such as cotton, petroleum products, automobiles and auto components, machinery, articles of iron and steel, fruits and vegetables, tea, coffee, spices, and animal feed.
Imports from Bangladesh amounted to USD 1.8 billion, primarily comprising textile products such as apparel, made-ups, yarn, and fabric, as well as leather goods, fruits, fish, and animal feed.
