India Investments In Bangladesh: In recent years, the Indian corporate sector has invested heavily in Bangladesh due to the strong economy of Bangladesh, its large population, natural gas reserves and cheap labour. Bangladesh is also considered a gateway to Southeast Asia for India. India’s economic and political relations with Bangladesh have been better than other neighbouring countries, which has attracted the Indian corporate world for investment. But after Bangladesh Prime Minister Sheikh Hasina left the country and the Bangladesh Army took over the power, questions are being raised about the safety of Indian corporate investment. Large scale violence has been witnessed there in recent times.
Indian corporate world invested
The Indian corporate sector has invested the most in sectors like textiles, power, pharmaceuticals in Bangladesh, which has boosted the economy there and has also increased employment opportunities for the local people. Apart from Anil Dhirubhai Ambani Group’s power company Reliance Power, Adani Group and public sector power company NTPC have also invested in Bangladesh. Apart from this, Tata Motors, Hero MotoCorp, Sun Pharma, Godrej and CEAT Tyres have manufacturing facilities in Bangladesh.
Reliance and Adani group are present
Anil Ambani’s Reliance Power is setting up a 3000 MW LNG based power project in Meghnaghat near Dhaka in collaboration with Bangladesh Power Development Board. Apart from this, the company is also setting up an LNG terminal in Chittagong in collaboration with Petrobangla. Adani Power, a subsidiary of Gautam Adani’s Adani Power Limited, is supplying 1600 MW electricity to Bangladesh from its power plant located in Godda, Jharkhand.
Bangladesh dominates the garment industry
In the last few years, many textile companies of India have turned towards Bangladesh. Since 2006, Indian textile and apparel companies started turning towards Bangladesh. Bangladesh has been getting a big advantage of having a lower minimum wage than India. Bangladesh is far ahead of India in terms of garment export. Between 2013 and 2023, Bangladesh’s garments have grown at a rate of 69.6 percent while Vietnam’s has grown at a rate of 81.6 percent. Whereas India’s garment export has grown at a rate of only 4.6 percent. Due to this, India’s share in the global garment trade has been continuously decreasing. The export of readymade garments from India was $ 16 billion in 2022-23, while during the same period, Bangladesh exported 3 times more than India at $ 47 billion. But political instability and turmoil in Bangladesh can bring a big opportunity for Indian garment companies.
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