India and Bangladesh relationship

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Causes :

1.   1.     India's foreign direct investment (FDI) in Bangladesh has declined in recent years, indicating a shift in its economic priorities. According to official data, Indian FDI in Bangladesh decreased by 29% in the last fiscal year alone.

2.       2. The political tensions and trade disputes between the two countries have strained bilateral relations, leading to a reevaluation of India's engagement strategies. Data from trade statistics show a decrease in bilateral trade volume and an increase in trade barriers over the past few years.

3.      3.  India's focus on enhancing ties with other South Asian nations like Nepal and Sri Lanka has diverted attention and resources away from Bangladesh.

Effects:

The departure of India from Bangladesh is expected to have multifaceted effects on both countries, as supported by data trends and Bangladesh may witness a short-term slowdown in certain sectors heavily reliant on Indian investments and aid, as demonstrated by a decline in FDI inflows. Politically, Bangladesh may intensify efforts to strengthen ties with other regional powers to fill the void left by India's exit, as evident in recent diplomatic engagements with China and Japan. 

©Sani

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