After the resignation of Prime Minister Sheikh Hasina amid massive anti-government protests, Bangladesh is now headed for an interim government.

Andrew Wood, S&P Global Ratings director for sovereign and international public finance ratings in the Asia-Pacific, said expected low domestic demand conditions in Bangladesh will lead to lesser imports, including from India.

"India is a well diversified exporter to the entire world and its trade profile is significantly larger than bilateral trade relationships with economies like Bangladesh," he told a webinar.

"Whatever the impact is going to be on directly is really quite unlikely to have a meaningful impact on its overall trade position for the fiscal year... its external position is quite strong in the country and is a net creditor to the world by our calculation," Wood was quoted as saying by Indian media reports.

India's exports to Bangladesh dipped to $11 billion in fiscal 2023-24 from $12.21 billion in fiscal 2022-23. Imports from there declined as well to $1.84 billion from $2 billion in the previous.

Fibre2Fashion News Desk (DS)