Bangladesh unrest LIVE | US revokes Hasina’s visa: Reports

India-Bangladesh trade remained stalled on Tuesday as turmoil continues in the neighbouring country. West Bengal Exporters Coordination Committee secretary Ujjal Saha said trade through land ports in the state has been halted due to “non-clearance of goods by Bangladesh customs, resulting in hundreds of trucks being lined up in parking lots”.

Trade between the two countries through land ports at Petrapole, Gojadanga, Mahadipur, and Fulbari in West Bengal has been affected, while some passenger movement has been reported but turnout remains low, sources said.

Saha noted that a Bangladesh government notification issued on Sunday declared a three-day holiday till Wednesday, except for essential services.

Trade through Petrapole in North 24-Parganas district, the largest land port, remains halted as the Benapole customs in Bangladesh remained non-functional.

Security at the land ports has been increased in response to the situation, he added.

Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), emphasised the need to protect factories in Bangladesh and maintain supply lines to sustain trade and economic activities.

“As Bangladesh is experiencing political turmoil, it is essential for all political factions to protect garment and other factories and keep supply lines open across the border,” he said.

Engineering Export Promotion Council chairman Arun Kumar Garodia expressed concern over the political developments in Bangladesh, noting the significant impact on Indian exporters.

Bangladesh, a key destination for Indian engineering products, saw a drop in exports to USD 542.1 million during the April-June period of the 2024-25 fiscal, a decrease of 8.2 per cent from the previous year.

Bangladesh’s exports to India are heavily concentrated in textiles and garments, which constitute 56 per cent of their exports.

Raising the Bangladesh issue during the Zero Hour in the Lok Sabha on Tuesday, Congress MP Manish Tewari said many countries in South Asia have been hit by political instability in the past three–four years and asked the government to specify what steps it has taken to maintain political stability in the region.

Tewari said India has had a special relationship with Bangladesh and played a special role in the creation of Bangladesh in 1971, due to which the geographical map of South Asia changed for a second time after 1947.

“The situation prevailing in Bangladesh is very sensitive and concerning. In January 2024, the Awami League formed the government under Sheikh Hasina for the fourth time in a row and within six months of that, a situation arose that a movement arose due to which Sheikh Hasina had to resign and even leave the country,” the former Union minister said.

“I want to bring to notice that not just in Bangladesh, in the past three–four years many countries in South Asia have been hit by political instability, be it Myanmar, Sri Lanka, or Maldives. Even in Pakistan, the hold of the military is increasing on the civilian government,” Tewari said.

He further said China’s intervention in the western Indian Ocean has increased.

“India is the most prominent country in South Asia. If there is instability in South Asia, it directly impacts India in a big way. I want to know from the government when External Affairs Minister will make a statement that what are the steps the government has taken in the last few years to maintain political stability in South Asia?” he said.

If this political instability keeps increasing what are the negative impacts on India, Tewari asked.

At least 24 people were killed on Tuesday after a mob set fire to Zabeer International Hotel owned by Shahin Chakladar, general secretary of Jashore District Awami League, according to Bangladeshi media. In Dhaka, three bodies were found in front of Jatrabari thana on Tuesday morning. A police uniform was seen on two bodies while the other body had handcuffs on.

Bahujan Samaj Party (BSP) chief Mayawati has said that her party stands with the Centre on its decision pertaining to the prevailing situation in Bangladesh.

In a post on X in Hindi, she wrote, “In view of the rapidly changing political situation in the neighbouring country Bangladesh, today’s all-party meeting is very important, in which the decision of all parties to stand by the decisions of the government is considered appropriate and necessary. BSP is also with the decisions of the Central Government in this matter.”

India is a well-diversified exporter and a blip in its exports to Bangladesh is unlikely to have any meaningful impact on India’s overall trade position for the full year, S&P Global Ratings said on Tuesday.

S&P Global Ratings, Director, Sovereign and International Public Finance Ratings (Asia-Pacific), Andrew Wood said that S&P expects domestic demand conditions in Bangladesh in this period to be weak and probably going to entail less support for exports from other countries, including India, into Bangladesh.

“India is a well-diversified exporter to the entire world and its trade profile is significantly larger than bilateral trade relationships with economies like Bangladesh.

“Whatever the impact is going to be on directly is really quite unlikely to have a meaningful impact on its overall trade position for the fiscal year... its external position is quite strong in the country and is a net creditor to the world by our calculation,” Wood said in a webinar.

Bangladesh is India’s biggest trade partner in South Asia, while India is the second biggest trade partner of the neighbouring country in Asia.

India’s exports to Bangladesh dipped to USD 11 billion in 2023-24 from USD 12.21 billion in 2022-23. Imports too declined to USD 1.84 billion in the last fiscal, from USD 2 billion in 2022-23.

India’s main exports include vegetables, coffee, tea, spices, sugar, confectionery, refined petroleum oil, chemicals, cotton, iron and steel, and vehicles. The main import items are fish, plastic, leather, and apparel, among others.