No impact on India’s overall trade: S&P

Political Uncertainty

♦ B’desh is India’s biggest trade partner in South Asia

♦ India is its 2nd biggest trade partner in Asia

♦ India’s exports to Bangladesh dipped to $11 bn in FY24 from $12.21 bn in FY23

♦ Imports too declined to $1.84 bn from $2 bn

New Delhi: 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.

Bangladesh is facing its worst political crisis since independence in 1971, with Prime Minister Sheikh Hasina resigning amid massive anti-government protests. Bangladesh Army Chief General Waqar-uz-Zaman on Monday announced that an interim government would be taking over the responsibilities.

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 of time to be weak and probably going to entail less support for exports from other countries, including India, into Bangladesh.