Indian companies operating in Bangladesh could face significant challenges due to the ongoing political crisis following the ousting of Prime Minister Sheikh Hasina. Many Indian firms have a substantial presence in Bangladesh's IT and technology sectors, and the intensified political instability could severely impact their operations and investments.
India’s trade with Bangladesh is notable, with exports totaling $11 billion, accounting for 1.4% of India’s total exports, and imports at $1.8 billion, representing 0.2% of India’s total imports. Bangladesh is India’s 25th largest trading partner, with bilateral trade reaching $12.9 billion. However, there has been a 9.5% decrease in India's exports to Bangladesh in FY24, as reported by Business Standard.
In the telecom sector, Bharti Airtel Ltd. holds a 28% stake in Robi Axiata, which contributes 5% to its total FY24 revenue. In the automotive sector, Hero MotoCorp operates a manufacturing plant in Bangladesh with a production capacity of 120,000 units per year. Ashok Leyland Ltd. supplies 65% of its locally assembled commercial buses and trucks, while Tata Motors Ltd. also maintains operations in the country. These companies may also experience repercussions from the crisis.
The political unrest is also affecting major Indian IT and technology companies like Wipro, TCS, and Infosys. Disruptions could lead to delays in projects and services. As Bangladesh’s economy falters, reduced spending on IT services may negatively impact revenues for these firms. Conversely, foreign entities reliant on Bangladesh for resource allocation might shift their focus to India, potentially benefiting the Indian economy.
𝐒𝐭𝐚𝐲 𝐢𝐧𝐟𝐨𝐫𝐦𝐞𝐝 𝐰𝐢𝐭𝐡 𝐨𝐮𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬 𝐛𝐲 𝐣𝐨𝐢𝐧𝐢𝐧𝐠 𝐭𝐡𝐞 WhatsApp Channel now! 👈📲
𝑭𝒐𝒍𝒍𝒐𝒘 𝑶𝒖𝒓 𝑺𝒐𝒄𝒊𝒂𝒍 𝑴𝒆𝒅𝒊𝒂 𝑷𝒂𝒈𝒆𝐬 👉 Facebook, LinkedIn, Twitter, Instagram
