B'desh instability not to impact credit quality of Indian firms: CRISIL

Leading research firm CRISIL Ratings said in its report that the recent political turmoil in neighbouring Bangladesh is unlikely to have any near-term impact on the credit quality of Indian corporates.

The report said that there has also been no significant impact on India's trade with Bangladesh going forward, while the effect will vary based on industry specific exposure.

It said a prolonged disruption can affect the revenue profiles and working capital cycles of some export-oriented sectors for which Bangladesh is either a demand centre or a production hub.

In the financial year 2023-24, total trade with Bangladesh was around USD12,949 million, with Indian exports at USD 11,065 million and imports at USD 1884 million.

The report said sectors such as cotton yarn, power, footwear, soft luggage and FMCG could see a negative impact. On the other hand, sectors like shipbreaking, jute, readymade garments would benefit, the report said.

India's trade with Bangladesh is relatively low