Wed Sep 18 03:59:58 UTC 2024: ## Bangladesh Unrest: Minimal Impact on India’s Trade, But Some Sectors May Feel the Pinch

**New Delhi, Sep 17 (IANS):** While recent developments in Bangladesh haven’t significantly impacted India’s overall trade, some sectors are expected to experience varying degrees of effect, according to a report by Crisil Ratings. The report does not anticipate any immediate impact on the creditworthiness of Indian companies.

**Cotton, Footwear, and FMCG May See Minor Impact**

The report identifies specific industries that may see a negative, but manageable impact, including cotton yarn, power, footwear, soft luggage, and fast-moving consumer goods (FMCG). These sectors rely on Bangladesh as a demand center or production hub.

**Ship Breaking, Jute, and Readymade Garments (RMG) Benefit**

On the other hand, industries like ship breaking, jute, and readymade garments (RMG) are expected to benefit from the current situation.

**Impact Varies by Industry and Exposure**

The report highlights that the extent of the impact will vary significantly depending on each industry’s specific nuances and exposure to Bangladesh.

**Impact on Indian Companies:**

* **Cotton yarn:** Companies in this sector may experience a decline in sales, as Bangladesh accounts for 8-10% of their revenue. The report advises close monitoring of their ability to compensate for losses through other markets.
* **Footwear, FMCG, and soft luggage:** These industries could face challenges due to operational difficulties in their manufacturing facilities located in Bangladesh. While most facilities have resumed operations, a full ramp-up and sustained supply chain stability are crucial.
* **Engineering, procurement, and construction (EPC) companies:** EPC companies involved in power and other projects in Bangladesh might witness delays in project execution this fiscal year. A significant portion of their workforce has been recalled to India, resulting in reduced workforce availability and potential revenue loss.
* **Electricity suppliers:** Delays in payment of dues from Bangladesh are also a possibility for companies supplying electricity to the country.

**Bangladesh’s Interim Government Plans Reforms**

Meanwhile, Bangladesh’s interim government, led by Chief Adviser Muhammad Yunus, has announced plans to establish six commissions focused on reforming the judiciary, election system, administration, police, anti-corruption commission, and the constitution. These commissions are expected to begin their work on October 1 and complete their tasks within three months to create a more democratic framework for the country.

**Overall, the report suggests that while the impact on India’s overall trade is minimal, certain industries should be closely monitored for potential challenges and opportunities arising from the situation in Bangladesh.**

[Embed a YouTube video here on the political situation in Bangladesh]

[Insert images here related to the industries mentioned in the article, like cotton production, footwear manufacturing, etc.]

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