Lucknow: The recent coup in Bangladesh has significantly impacted the business activities of Uttar Pradesh with over 140 products, including rice, agricultural products, equipment, leather goods, adhesives, engineering goods, and e-rickshaws, being exported from UP, the unrest has led to severe disruptions.
Payments worth approximately Rs 700 crore have been stalled due to the ongoing violence, and a large number of trucks loaded with orders are currently stranded at the border.
More than 40 businessmen from UP have established expansion units in Bangladesh, primarily focusing on leather and textiles. According to local entrepreneurs, the situation is dire, and it remains uncertain when normalcy will return. As a precaution, employees are staying within the units to ensure safety.
Bangladesh serves as a vital market for Uttar Pradesh. The UP chapter of the Federation of Indian Export Organisations reports that trade between UP and Bangladesh exceeds Rs 2,500 crore. Key exports from UP to Bangladesh include rice, leather and engineering goods, adhesive tape, poly film, soda ash, e-rickshaws, and textile products.
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Additionally, over 6,000 commodities are exported from India to Bangladesh, including limited quantities of clothes, spices, and edible oil from UP.
The violence has brought exports to a halt, causing payments to exporters to be suspended. Shipments, primarily transported by road through the Sona Masjid, Benapole, and Petra Pol borders, are currently stuck on the Indian side due to the inability to cross the border.
Madhav Singhania, CEO of JK Cement, emphasized the potential impact on India's business, stating, "The coup in Bangladesh will affect India's business, but to know the full extent, we will have to wait a bit. Political stability and peace are very important, especially for a neighboring country that has made rapid progress in the textile and leather sectors."
Shuja Mirza, Director of Red Tape, emphasises Bangladesh's strong presence in the textile industry, noting that the political instability will inevitably affect business. "Textile companies from all over the world, including India, operate in Bangladesh. The effect of political instability will be visible on business," Mirza said. His textile unit in Bangladesh, with products worth more than Rs 1,000 crore, remains safe.
Neeraj Singhal, National President of the Indian Industries Association (IIA), reported that a substantial quantity of textile sector products is exported to Bangladesh from Ghaziabad and Noida, along with agricultural products and equipment. "Due to the current situation, trade has stopped. Payments are stuck. Orders are stuck at the border," Singhal stated, underscoring the broad impact of the coup on various sectors.
As the situation unfolds, businesses in UP are closely monitoring developments, hoping for a swift resolution to resume normal trade activities with Bangladesh.
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