Commerce Secretary Sunil Barthwal on Wednesday informed that India is actively monitoring the evolving situation in Bangladesh and implementing measures to enhance cross-border trade.
Barthwal addressed concerns raised by domestic exporters regarding the political unrest in Bangladesh, which they fear could adversely affect bilateral trade.
The Secretary reassured that the situation in Bangladesh is stabilising quickly.
"We are closely monitoring the trade dynamics at the borders, and it appears that any previous disruptions have been largely resolved," he stated.
He emphasised the importance of fostering improved trade relations between India and Bangladesh.
"We believe that all possible efforts should be made to enhance trade, and we are committed to doing so," Barthwal affirmed.
On August 8, Nobel laureate Muhammad Yunus returned to Bangladesh from Paris to assume office as the head of the interim government.
This development follows the resignation and subsequent flight of former Prime Minister Sheikh Hasina amid widespread protests against her administration.
India's exports to Bangladesh saw a notable increase of 11.13% in July, reaching USD 803.52 million.
For the April-July period, exports surged by 10.76% to USD 3.58 billion, solidifying Bangladesh's position as India's largest trading partner in South Asia.
Conversely, India is the second-largest trading partner for Bangladesh in Asia.
However, India's total exports to Bangladesh fell to USD 11 billion in the fiscal year 2023-24, down from USD 12.21 billion the previous year.
Similarly, imports declined to USD 1.84 billion, compared to USD 2 billion in 2022-23.
Key export items from India include vegetables, coffee, tea, spices, sugar, refined petroleum, chemicals, cotton, iron, steel, and vehicles. Bangladesh primarily exports fish, plastic, leather, and apparel to India.
"We are vigilant and aim to restore trade relations to their former glory. While it is premature to predict specific changes, we are observing the situation closely," Barthwal added.
Echoing these sentiments, Federation of Indian Export Organisations (FIEO) President Ashwani Kumar expressed optimism that a return to normal trade relations would significantly boost order bookings and benefit labour-intensive export sectors.
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