The current political turmoil in Bangladesh, will undoubtedly have significant economic implications on India. India exports a diverse range of products to Bangladesh including cotton, machinery, auto parts, agriculture items, food products and more while Bangladesh relies more on export of jute products, garments to India. The political instability might jeopardize the economic dependence of both countries.

If the present situation persists, the bilateral trade will undoubtedly suffer, leading to supply chain disruptions at the border. This is particularly concerning for India, that exports a number of perishable items to Bangladesh and any disruption in the supply chain will financially strain these exporters. Additionally, Indian exporters have already raised concerns of payment delays due to foreign exchange shortage in Bangladesh and any outrage to the Internet connectivity will further aggravate the woes of the trading community.

Meanwhile for Bangladesh, the textile sector, which accounts for the major chunk of the country’s exports, might also get affected. 

Having said that, it could open up opportunities for Indian companies because the current situation may lead to international companies canceling and shifting their orders to India. 

However, in hindsight, if the situation continues like this, Indian companies in Bangladesh might consider relocating back to India. 

Though I am very hopeful that the situation will improve soon, at the same time I appeal to both the Indian government and the interim government in Bangladesh to ensure that trade continues and they take steps to mitigate impacts on the trading community. They have to ensure that the trading route remains open and flow of goods is not impacted.

I invite your opinions.