Statsguru: How India, Bangladesh fared after a year under Yunus' rule

Despite worsening diplomatic ties and rising anti-India sentiment under Mohd Yunus' rule, India's trade with Bangladesh has seen unexpected growth, led by imports

It has been a year since Sheikh Hasina’s ouster from Bangladesh, and diplomatic relations between India and its neighbouring country have nosedived under Muhammad Yunus’ rule. This includes tit-for-tat trade restrictions levied by both 

nations. 

 

However, despite rising anti-India sentiment in Bangladesh, goods trade between the nations has expanded. This is reflected more in India’s imports than in its exports.

 

Although inflation declined marginally, the unemployment rate rose, and the economic growth rate fell to below 4 per cent — the lowest since 2019-20 (FY20) — under Yunus. 

 

                                            India’s total goods exports to Bangladesh grew by 0.24 per cent year-on-year under Yunus’ regime. During the last year of Hasina’s rule, it was 6.86 per cent. 

 

                                              India’s merchandise imports from Bangladesh increased by 12.16 per cent under Yunus’ regime compared to a 13.3 per cent fall during Hasina’s last year. 

 

                                            Bangladeshi patients make up the majority of tourists visiting India for medical reasons. However, the number of Bangladeshis coming to India for medical treatment fell in FY24 and the first quarter (Q1) of FY25. 

 

                        Share of net foreign direct investment (FDI) inflows into Bangladesh from India was just 4.8 per cent during Q1FY25 against over 10 per cent in FY24. 

                         

 

India recently restricted the import of jute and its related products from Bangladesh via its land ports, after having put restrictions on apparel, processed food items, and cotton imports earlier. In FY23 and FY24, before the restrictions, over 50 per cent of India’s imports from Bangladesh were via land ports, with Petrapole land port accounting for the highest share in such trade.