Indian export body wants reserve bank's relief on payment deadline

The Federation of Indian Export Organisations (FIEO) plans to approach the Reserve Bank of India (RBI) to request an extension of the payment realisation deadline for exporters dealing with Bangladesh. 

Yogesh Gupta, the regional chairman (east) of FIEO, informed Times of India that while exports to Bangladesh have resumed, there is growing concern over the payment situation from the neighbouring country. He stated, "We are uncertain about the exact situation there, particularly at the banks, which is why we will seek some flexibility from RBI."

India's exports to Bangladesh amount to $11.8 billion, with a significant portion conducted through land routes. Earlier, FIEO president Ashwani Kumar noted that trade with Bangladesh was returning to normal, with most border crossings, including Petrapole, Ghojadanga, Hilli, and Changrabandha, operating at full capacity. Although trade was briefly halted due to the political crisis in Bangladesh, occasional disruptions have occurred over the last 15-20 days. However, Kumar mentioned that importers had provided reassuring feedback during these disruptions, expecting the situation to stabilize within a week. While exports of perishables were slightly impacted, other commodities are expected to recover soon.

India's exports to Bangladesh include products such as cotton, petroleum products, automobiles and auto components, yarn and fabric, cereals, fruits and vegetables, tea, coffee, spices, and animal feed. On the other hand, imports from Bangladesh primarily consist of apparel, leather goods, animal feed, and fish. Engineering Export Promotion Council chairman Arun Kumar Garodia reported that the total value of engineering goods exported to Bangladesh during the April-June period in FY 2024-25 was $542.1 million, reflecting an 8.2% decrease from $590.4 million during the same period last year.

During Bangladesh's political crisis, India became a preferred alternative for global clothing orders, potentially increasing its market share by 2%. Indian textile entrepreneurs have predicted a 10-15% shift in orders, advocating for a China-plus-one strategy for long-term growth. Bangladesh and Vietnam had previously gained market share due to their low labor costs and large-scale manufacturing. Meanwhile, Shahid Ali, who fled a life-threatening situation in Bangladesh, sustained fractures after jumping from a burning hotel in Jashore. He was able to cross the Petrapole border into India with his brother's help and is currently recovering in a Kolkata hospital, recounting the chaos and injuries he endured.

The political crisis In Bangladesh escalated following violent protests against a 30% job quota for descendants of freedom fighters. Prime Minister Sheikh Hasina resigned, leading to the dissolution of Parliament on 5 August 2024. In response to attacks on the Hindu community, Sadhguru called for India's intervention to protect minorities, citing the historical and cultural ties between the two nations.