India and Bangladesh have imposed trade restrictions on one another, raising concerns about significant business disruption.
Last month, Bangladesh decided to restrict the import of cotton yarn from India via land routes to protect its domestic industries from the impact of cheap foreign products.
This decision came after India suddenly revoked a facility that allowed Bangladeshi products to be exported abroad through Indian ports and airports.
It is worth noting that relations between India and Bangladesh have been strained since the ousting of Sheikh Hasina Wajid. Sheikh Hasina is currently living in exile in India.
Sheikh Hasina is facing charges of crimes against humanity, money laundering, and corruption in Bangladesh.
Bangladesh’s interim government has demanded that India hand over Sheikh Hasina, but India has not responded officially.
India, criticising the alleged attacks on the Hindu minority in Bangladesh, stated that the recent killing of a Hindu leader reflects a pattern of organised oppression under the interim government.
On the other hand, Bangladesh denies targeting minorities and attributes such incidents to political motives or general crimes.
According to some analysts, India’s actions are a reaction to comments made by interim government head Dr. Yunus during his recent visit to China.
Currently, Indian textile industries are pressuring for restrictions on the import of Bangladeshi garments, and due to diplomatic deadlock, fewer Indian visas are being issued to Bangladeshis. Meanwhile, Dhaka is reviewing transit agreements granted to India by the current government.
Meanwhile, after a long pause, Bangladesh has resumed diplomatic talks with Pakistan, further complicating the regional scenario.
At a time of escalating tensions between India and Pakistan, the growing friendship between Dhaka and Islamabad is being closely watched, even though India has not officially voiced any concerns.
