Trade diplomacy

• India has announced trade restrictions on Bangladesh’s readymade garments and other commodities, signaling deteriorating political relations spilling into economic ties.

• The restriction may hurt Bangladeshi businesses dependent on garment export, but will not aid New Delhi’s strategic interests.

• Bangladesh’s political turmoil stems from protests against its former elected government, and the interim leadership blames New Delhi due to perceived close ties with the previous administration.

• The Yunus-led administration’s warming up to Pakistan and ban on the Awami League have worsened relations.

• New Delhi must advise the regime to conduct elections quickly, engaging with multiple stakeholders in Bangladesh’s polity.

• Restrictive moves related to trade could heighten anti-India sentiment and create fresh law and order problems, potentially leading to security issues in the northeast.

• India should maintain working relations with the Yunus administration until a popularly elected government takes charge.