Sheikh Hasina broke the beautiful dream of Bangladesh! The conflict brought the economy to a standstill.

New Delhi. At the beginning of the year 2024, when Sheikh Hasina assumed the post of the Prime Minister of Bangladesh for the fourth time, not only India’s hopes rose, but the people of Bangladesh also felt that their country would definitely join this list. will List of developing countries, if not developed. A target of 2026 was also set for this. Here, when India also set itself the target of making itself a 5 trillion dollar economy by 2027, the neighboring country’s expectations from us increased even more. Those hopes got wings when Prime Minister Narendra Modi took the reins of India for a third term in June. Everything was going according to plan when Bangladesh made a mistake which changed the whole situation.

Today i.e. Monday the Prime Minister of Bangladesh Sheikh Hasina not only resigned from her post but also had to leave her country. There were bloody riots in Bangladesh over the reservation issue, in which many youths lost their lives. Although this issue is an internal matter of Bangladesh, its economy is largely dependent on other countries. Therefore, the impact of these riots is directly visible on its economy. Let’s explore with some statistics how much damage Bangladesh suffered from the mistake.

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The economy had strengthened.
Before giving the example of loss to Bangladesh, let’s talk about its merits. Bangladesh was formed in 1975 and at that time the poverty rate in the country was more than 83% which has reduced to 20.5% by 2020. The per capita income of the country also stood at 1,827 dollars while the risk factor of the economy also fell below 32. Overall, the country was on track to join the list of developing countries by 2026, meeting all UN standards. Bangladesh’s economy had a strong post-pandemic growth rate of 7.2 percent.

Foreign investment was increasing.
You already know that Bangladesh is mostly dependent on foreign economy and foreign investment has also increased here. Global rating agencies gave the country a good rating, due to which investors’ confidence increased and multinational companies from many countries, including Europe, set up their manufacturing here. Recently the economy of Bangladesh has also crossed the mark of 455 billion dollars. Every year Bangladesh exports $12.5 billion worth of garments to the US and Europe.

What will be the harm now?
Due to the protests that have been going on for almost 2 weeks in Bangladesh, more than 1 lakh crores of rupees have been lost so far. At that time, the army took control of the country and declared a 3-day strike. Due to which import and export has come to a complete standstill and all ports have been closed. Freight and transport services have also come to a standstill, which may increase the country’s deficit by two to three times in the next three days.

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Investors will be impressed.
Foreign investors have invested a lot of money in the country and they may suffer huge losses due to this protest and shutdown. Obviously, this will also affect the intentions of foreign investors and due to the control of the military, the domestic policy may once again go into a period of uncertainty. This will have a direct impact on domestic and foreign investment, which will definitely slow down the economy.

Big impact on business
The economic activities of the country have also been adversely affected due to unstable environment, shutdowns and protests. This will have a direct impact on the manufacturing of local companies. It is obvious that this will reduce the production and if the market demand is not met then the inflation will definitely increase which will ultimately be borne by the common man. Units of many garment manufacturing companies in Bangladesh. If this is affected, the prices of branded clothes imported from abroad may also increase.

Impact on trade with India
India and Bangladesh not only share a border of 4,092 km, but the two countries are also very close in terms of trade. Obviously, any stability in Bangladesh could affect India’s border security as well. Besides, it is likely to have an impact on bilateral trade and supply chain. India is Bangladesh’s second largest trading partner in Asia. In the fiscal year 2023-24, Bangladesh sent goods worth about Rs 17,000 crore to India, while the total trade between the two countries was $14 billion (Rs 1.16 lakh crore).

India has invested 70 thousand crore rupees.
India has invested around 70 thousand crore rupees in various development projects of Bangladesh. Obviously, this accompanying problem can also affect the country’s investment. India has invested in many infrastructure projects, including building roads, rail and shipping yards. It is estimated that India has invested in around 93 projects in Bangladesh.

Tags: Bangladesh, Bangladesh news., Business news