Trade between India and Bangladesh has come to a halt due to current border closures, according to Ajai Sahai, Director General and CEO of the Federation of Indian Export Organisations (FIEO). This disruption, which has persisted for the past two weeks, is significantly affecting export and import operations, particularly for perishable goods.
The standstill is largely attributed to erratic internet issues impacting the banking sector, which in turn hampers export processes. Despite these challenges, there is cautious optimism among Indian exporters that the situation might be temporary, with hopes for a return to normal operations soon.
Sahai also noted the impact on investments, indicating that while immediate plans in Bangladesh are currently on hold, stakeholders are closely monitoring the situation. Communication between FIEO and Indian exporters remains strong, with some considering fulfilling urgent orders from India to address customer demands during this period of uncertainty.
In the previous financial year, bilateral trade between the two countries was valued at approximately USD 12.8 billion. India’s exports to Bangladesh included commodities such as cotton, petroleum products, and food items, while Bangladesh’s exports to India primarily comprised textile and leather products, along with agricultural goods.