Indian businesses in Kolkata have begun to to feel the pinch as trade between India and Bangladesh continues to slow down.
Kolkata has been a gateway of trade between India and Bangladesh for decades, gateway for a wide range of goods, including textiles. automobile parts, grains, food products, chemicals, and machinery, that are exported to Bangladesh, says Times of India.
The current situation however, disrupted trade and business, bringing it to a standstill and leaving businessmen on this side of the border grappling with uncertainty.
Even shops and markets in and around Marquis Street, where Bangladeshis stay, have also been hit hard. Businesses in Kolkata, which are heavily reliant on exports to Bangladesh, are bearing the brunt of this unrest. With orders drying up, various sectors in the city are experiencing a sharp decline in activity. Businesses dealing in textiles, a significant export commodity, automobile parts, grains, etc., have seen a nearly 60% dip in orders in the past few weeks.
“Bangladesh is a very big market for us, amounting to exports worth millions of dollars every year. But the current situation has put brakes on all business between the two countries. Exports have come down to zero,” said Manoj Jhawar, a textile exporter in Kolkata and member of the Textile Traders Association in the state. Bangladesh also imports automobile parts from India in huge numbers. Shops in and around the New Market area depend heavily on Bangladeshi visitors for business
Al Malik on Mirza Ghalib Street is a wholesaler of men’s ethnic wear. “Every month we do business worth several lakhs, which has come down to a few thousands in the past few weeks,” said owner Mohammad Ansar.
The Petrapole-Benapole border, a crucial trade corridor between the two countries, has seen a noticeable drop in activity.
“The situation in Bangladesh has impacted almost all the sectors in Kolkata as everything is exported from Kolkata.
All business activity pertaining to Bangladesh has come to a standstill,” said Sushil Poddar, president of the Confederation of West Bengal Trade Associations, an apex body of several business associations in the state.
Adding to the woes of Kolkata’s businessmen is the mounting concern over unpaid debts. Many Bangladeshi businesses owe significant amounts to their Indian counterparts, payments that are now in limbo.
Exporters in Kolkata are worried about the financial repercussions if these debts remain unsettled. “We trusted our partners in Bangladesh because trade was always smooth. But now, with the turmoil, our payments are stuck. It’s a huge hit to our liquidity,” said Amit Basu, a food products exporter.
The ripple effects of the situation in the neighbouring nation are not confined to exporters alone. Logistics companies, agents, and even transporters in Kolkata are feeling the pinch.
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