Wed Sep 18 10:09:59 UTC 2024: ## Bangladesh Crisis Has Limited Impact on Indian Businesses, Says Crisil

**New Delhi, India -** Despite political turmoil and an economic crisis in Bangladesh, Indian businesses are largely unaffected, according to a report by rating agency Crisil. While the situation in Bangladesh has led to several global companies withdrawing their businesses, Crisil states that the impact on India is minimal.

The report acknowledges that certain sectors, including footwear and daily-use product manufacturers, may experience minor disruptions due to their production facilities in Bangladesh. However, most of these facilities have resumed operations, indicating a limited overall impact.

Crisil emphasizes that India’s trade with Bangladesh, accounting for just 2.5% of total exports and 0.3% of imports in the previous fiscal year, is relatively small. Consequently, the primary impact on Indian businesses will be restricted to currency fluctuations.

India’s key exports to Bangladesh include cotton and cotton yarn, petroleum products, and electricity, while imports consist primarily of vegetable oils, marine products, and garments. These sectors may experience slight disruptions due to the crisis.

While the recent political instability in Bangladesh, including the dethronement of former Prime Minister Sheikh Hasina, led to widespread economic disruptions, the situation has since stabilized with Nobel laureate Muhammad Yunus assuming leadership of the interim government.

Crisil advises continued monitoring of the Bangladeshi Taka, but remains confident that the overall impact on Indian businesses will remain limited.

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