South Asian Correspondent

Tag: trade

India’s sari trade sees mixed impact from tensions with Bangladesh

ndian sari industry collapses significantly. Photo: Al Jazeera

Political and trade tensions between India and Bangladesh have disrupted the sari industry, hurting luxury weavers in Varanasi while giving cotton sari traders in West Bengal a boost.

Relations between the neighbours have been strained since August last year, when former Bangladeshi Prime Minister Sheikh Hasina fled to New Delhi after being ousted in an uprising. Dhaka has accused India of supporting Hasina, prompting boycotts of Indian businesses and attacks on minorities seen as her allies.

In April, Bangladesh restricted imports of Indian yarn and rice. India retaliated in May by banning Bangladeshi ready-made garments and processed food via land borders, though Dhaka can still export saris through sea routes, which traders say are costlier and slower, says Al Jazeera.

Banarasi sari losses

In Varanasi, Prime Minister Narendra Modi’s parliamentary constituency, the globally renowned Banarasi sari industry has reported steep declines. The saris, which can sell for more than 100,000 rupees ($1,130) each, are a popular purchase in Bangladesh during festivals and weddings.

Weaver Mohammed Ahmad Ansari said orders had dropped by more than half. Wholesale trader Pawan Yadav, who once supplied about 10,000 saris annually to Bangladesh, said his business had “come to a standstill” and that clients still owed him about 1.5 million rupees ($17,140).

The industry, already under pressure from demonetisation, COVID-19 and competition from power looms, has seen the number of weavers shrink to about 200,000. Advocates warn more artisans may abandon the trade unless support is provided.

West Bengal gains

By contrast, sari traders in West Bengal are regaining ground they had lost to cheaper imports from Dhaka.

“Saris from Bangladesh had devoured at least 30% of our market,” said Tarak Nath Das, a trader in Shantipur. “Now we are recapturing our old markets.” He estimated sales during the recent festival season rose at least 25% compared with last year.

Local traders said Bangladeshi saris had been popular because of attractive packaging and fabric quality. The new restrictions have reduced competition, with designers noting the timing ahead of the festival season gave local weavers a critical advantage.

Industry backdrop

India’s sari sector is valued at about 800 billion rupees ($9 billion) and is a key part of the wider textile industry, which employs more than 3.5 million people.

Campaigners say that despite current challenges, India’s handloom tradition remains unmatched globally. “The need of the hour is to re-position handloom as a product of luxury, and not poverty,” said Ramesh Menon, founder of advocacy group Save the Loom.

October 4, 2025
Meghalaya ready to contribute to Bangladesh-India bilateral trade : Indian minister

High Commissioner of Bangladesh to India, Md Mustafizur Rahman meets with Chief Minister of Meghalaya Conrad Sangma in a courtesy visit on May 18, 2023 Courtesy

Shilong: The state government of Meghalaya, of India, is keen to deepen economic and trade ties with Bangladesh.

Conrad Sangma, chief minister of Meghalaya, discussed this when the High Commissioner of Bangladesh to India, Md Mustafizur Rahman, paid a courtesy call on him at his office on Wednesday.

The chief minister apprised the high commissioner about the opportunities and possibilities of expanding trade and commerce in the state of Meghalaya.

In particular, he highlighted the possibility of direct import of garment, plastic and electronic products, processed food and frozen food from Bangladesh, according to the Bangladesh High Commission in New Delhi.

The chief minister also laid emphasis on strengthening mutual partnership in global value chain and diversifying products.

Bangladesh and India will gain from the trade deal once it is signed, Bangladesh’s export earnings will shoot up by 190% and India’s by 188%.

He sought Bangladesh’s cooperation in developing Meghalaya’s tourism industry.

Referring to Bangladesh’s historical relationship with Meghalaya, High Commissioner Rahman emphasized on enhancing connectivity with the state and increasing people-to-people interactions.

He said that the governments of Bangladesh and India are working to promote connectivity with the northeastern states by road, rail and river.

He also highlighted the willingness of the present government of Bangladesh to boost trade ties with the northeastern part of India.

He further mentioned that the investors of Meghalaya have ample opportunity to invest in different sectors of Bangladesh. The high commissioner also drew the chief minister’s attention to reopening the closed land customs stations in the border areas at the earliest possible.

Earlier, the Bangladesh high commissioner held a meeting with the Industries and Trade Fair Association of Assam in Guwahati.

During the official trip, he will visit several land customs stations along the border and hold meetings with the business communities and trade representatives at Dawki and Tamabil in Meghalaya.

May 18, 2023
Bangladesh-India trade using rupee instead of US dollar could start soon

Bangladeshi-taka-indian-rupee

Bangladesh could soon start trading with India using rupee instead of US dollar, trial for which has been done by Bangladesh Bank recently.

The ministry of commerce has placed a written recommendation at the last cabinet meeting regarding the possibility and opportunity of using rupee instead of dollar.

Currently Bangladesh exports goods to India worth around $2 billion.

Graph of last 10 years Bangladesh-India Bilateral trade

‘The use of rupee will start with Bangladesh’s $2 billion trade with India. Bangladesh Bank has almost finished all kinds of trials in this regard. Trading in rupee will be introduced in both countries only after bilateral decision on some issues,’ an executive director of Bangladesh Bank told UNB.

Wishing anonymity, he said that banking systems in India and Bangladesh have to sign separate agreements on using rupee.

Meanwhile India-Bangladesh Chamber of Commerce and Industry has submitted the total trade account to the central bank in the form of a proposal. This initiative is being taken to overcome the existing dollar crisis, sources said.

Bangladesh Bank spokesperson Md Mezbaul Haque said that India-Bangladesh trade, using rupee instead of US dollar, is still in the experimental stage. Some issues still need to be settled.

‘There are some bilateral issues that need to be resolved. Then the banks have to prepare. But there will be a positive decision in this regard,’ he added.

In response to a question whether there will be a fixed annual dollar quota for opening LCs, he said, LCs will be opened according to the needs of businessmen. But the only source of rupees is from the export earnings of Bangladeshi goods in India.

‘We are importing more from India than we export. This is why there is a trade deficit. As a result, the amount of rupee is also being considered,’ Mezbaul said.

Most of the trade between India and Bangladesh takes place through Benapole-Petrapole land port.

Currently India is trading in rupees with Russia, Mauritius, Iran and Sri Lanka.

At the Bangladesh-India ministerial meeting on trade, held in the Indian capital New Delhi on December 22-23 last year, India proposed to introduce the rupee as a medium of trade for both countries.

Then, on the sidelines of the meeting of G20 finance ministers and central bank governors held in Bengaluru, India on February 24-25, there was a discussion between the two countries about moving the dollar as an exchange currency.

There, Bangladesh Bank governor Abdur Rauf Talukder and Reserve Bank of India governor Shaktikanta Das discussed the possibility of such a system using rupee instead of US dollar.

(Except for the headline, this story has not been edited by SAC staff and is published from a syndicated feed.)

April 1, 2023