Bangladesh is facing serious economic challenges due to its changing attitude towards India. Political decisions and strained trade ties have affected key industries, especially the garments sector. India had earlier supported Bangladesh with low-cost trade routes, but recent tensions have led to the withdrawal of this help, causing job losses and increased costs for Bangladeshi exporters.
Garment Industry in Trouble
Bangladesh’s garment industry is very important for its economy. It makes up 85% of the country’s exports and gives jobs to around 4 million people, most of whom are women.
India Helped During COVID
During the COVID pandemic, Bangladesh had goods but no way to export them. India stepped in and allowed Bangladesh to use its ports and airports to ship goods to other countries. This support helped Bangladesh a lot.
Why Indian Ports Were Useful
Bangladesh’s own ports are small and costly. Sending goods through India was much cheaper. For example, shipping from Indian ports cost $2–$2.5 per kg, while direct exports from Bangladesh cost $5–$6 per kg. Using Indian routes saved a lot of money.
End of India’s Support
India later stopped giving this facility to Bangladesh. Officially, the reason was congestion at Indian ports, but experts say it was due to political tensions. Bangladesh had blocked cotton imports from India and took positions that India saw as hostile. India responded by ending the trade help.
Impact on Factories and Jobs
After this decision and a change in the Bangladeshi government, many factories closed. In just one industrial area, 170 factories shut down and 40,000 workers lost their jobs. Now, Bangladesh has to use longer and more expensive routes through other countries like Sri Lanka or Pakistan.
Yarn Import Disruption
Bangladesh also stopped importing yarn from India through land routes. This upset local businesses, as 95% of their yarn came from India at cheaper prices. They will now have to buy from other countries at higher costs.
Political decisions and a tough stance toward India have hurt Bangladesh’s economy. The loss of cheap trade routes and cotton imports has badly affected its garment industry, jobs, and exports.
