(MENAFN- KNN India)
New Delhi, Aug 9 (KNN) In light of recent Political upheaval in Bangladesh, the Federation of Indian Export Organisations (FIEO) is preparing to approach the Reserve bank of India (RBI) for an extension of the payment realisation deadline for exporters dealing with the neighbouring country.
Yogesh Gupta, FIEO's regional chairman (east), expressed concern over the payment situation in Bangladesh, citing uncertainties about the banking sector.
"We are uncertain about the exact situation there, particularly at the banks, which is why we will seek some flexibility from RBI," Gupta told the Times of India.
Despite these concerns, India's exports to Bangladesh, valued at USD 11.8 billion annually, have largely resumed. FIEO president Ashwani Kumar reported that most border crossings, including Petrapole, Ghojadanga, Hilli, and Changrabandha, are now operating at full capacity.
While occasional disruptions have occurred over the past few weeks, importers remain optimistic about a swift return to normalcy.
India's export portfolio to Bangladesh is diverse, encompassing cotton, petroleum products, automobiles, yarn and fabric, cereals, fruits and vegetables, and various other commodities. Conversely, Bangladesh's exports to India primarily consist of apparel, leather goods, animal feed, and fish.
The engineering sector, however, has seen a slight decline. Arun Kumar Garodia, chairman of the Engineering Export Promotion Council, reported that engineering goods exports to Bangladesh dropped by 8.2 per cent to USD 542.1 million in the April-June period of FY 2024-25, compared to the same period last year.
Interestingly, the political crisis in Bangladesh has inadvertently benefited India's textile industry. Global clothing orders have shifted towards India, potentially increasing its market share by 2 per cent.
Indian textile entrepreneurs predict a 10-15 per cent shift in orders and advocate for a China-plus-one strategy for long-term growth.
The political situation in Bangladesh remains tense following violent protests against a controversial job quota policy. Prime Minister Sheikh Hasina's resignation and the subsequent dissolution of Parliament on August 5, 2024, have further complicated matters. Reports of attacks on minority communities have prompted calls for India's intervention from prominent figures like Sadhguru.
As the situation unfolds, Indian exporters and policymakers are closely monitoring developments in Bangladesh, balancing economic opportunities with geopolitical concerns.
(KNN Bureau)
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