00:30Bangladesh is currently India's 25th largest trading partner with bilateral trade valued
00:37at $12.9 billion.
00:40This trade relationship is heavily skewed towards exports, making Bangladesh India's
00:478th largest export partner.
00:50However, recent data shows a decline in this trend.
00:55In FY24, India's export to Bangladesh dropped by 9.5%, totaling $11 billion.
01:06Bangladesh remains a significant market for Indian auto exports, similar to countries
01:12in Africa and Latin America.
01:14Yet, the ongoing political unrest in Bangladesh poses a serious risk for investors.
01:22This instability not only threatens existing projects but could also lead to an increase
01:30in illegal migration into India.
01:33Arpita Mukherjee, a professor at the Indian Council for Research on International Economic
01:38Relations, highlights that this unrest is creating substantial uncertainty for exporters
01:46and raising risks for investors.
01:50Domestic challenges in Bangladesh have also impacted bilateral trade adversely.
01:56The country is experiencing a severe dollar shortage, which has constrained its ability
02:03to import goods, including those from India.
02:07Rising inflation within Bangladesh has further decreased domestic demand, leading to reduced
02:14consumption of both local and imported products.
02:19Consequently, India's imports from Bangladesh fell by 8.7%, amounting to $1.8 billion in
02:282023-24.
02:31Key imports from Bangladesh include iron and steel products, textiles and leather goods.
02:38In a related development, Indian railways had suspended several train services to Bangladesh.
02:45The Kolkata-Dhaka-Kolkata-Mathre Express, Kolkata-Dhaka-Koa-Mathre Express and Kolkata-Khulna-Bandhan Express have all been cancelled,
02:56reflecting the growing impact of the regional instability on transportation and trade.
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