New Delhi/Dhaka. Rating agency Crisil said on Tuesday that the recent developments in Bangladesh have no significant impact on India’s business and are not expected to have any near-term impact on the credit quality of Indian industry. Crisil Ratings said in a report that the impact of the Bangladesh crisis will vary depending on industry and sector-specific nuances and risks.
He said, “We do not expect this development to have any near-term impact on the credit quality of India’s industry. However, if the disruption persists for a long time, the revenue and working capital cycles of some export-oriented industries may be affected.” Some companies making footwear, daily consumption goods may be affected as their manufacturing units are located in Bangladesh. These plants faced operational challenges when the crisis began but now most of the units have started operating.
Along with this, the credit rating agency said that the trend of Bangladeshi currency Taka will also have to be monitored. According to Crisil, India’s trade with Bangladesh is relatively low. It was 2.5 percent of its total exports and 0.3 percent of total imports in the last financial year.
India’s commodity exports to Bangladesh mainly include cotton and cotton yarn, petroleum products and electricity, while imports mainly include vegetable fat oil, marine products and garments. Last month, all activities in Bangladesh came to a standstill after chaos spread following massive student protests. However, the situation has started returning to normal after Nobel laureate Muhammad Yunus was made the head of Bangladesh’s interim government.
World Bank may give Bangladesh an additional two billion dollars
The World Bank said on Tuesday that it could provide an additional US$2 billion to Bangladesh in the current fiscal year. This amount will be given for important reforms, flood control, better air quality and health services. World Bank regional director Abdulay Sek promised new assistance during a meeting with interim government chief advisor Muhammad Yunus in Dhaka on Tuesday.
SEC said, “The World Bank is committed to increasing the loan to Bangladesh in the current financial year to help the reform agenda of the interim government.” The chief advisor gave information about this by posting on X. Yunus wrote on X, “SEC informed that the World Bank can provide new financing of about two billion dollars in the current financial year to support important reforms, flood response, improved air quality and health services.”